- Says Abe may decide on extra stimulus given the state of economy
- Any package would need to balance growth and fiscal discipline
- May be difficult to compile an exceptionally large package
- Measures to help low income households is one option but will be up to Abe to decide
It’s these kinds of headlines that is going to underpin Japanese stocks and yen pairs. There’s not going to be many traders looking to exit JPY shorts to go long while the threat of stimulus is on the table. USD/JPY is already back up to test 116.00 as it trades 115.95.
