• outlook stable

USDJPY higher at 119.15 in a flash but back down to 118.85 now

  • Moodys cites uncertainty over Japan’s fiscal debt reduction goal and effect of growth policies
  • also cites increased risk of rising JGB yields
  • Japan’s growth strategy poses risk to debt consolidation
  • rating action does not affect Japan’s AAA foreign currecncy, local currency country and bank deposit ceilings

USDJPY all the way back down to 118.40

  • BOJ inflation goals may put pressure on JGB yields
  • yields may rise without any commensurate revenue gain
  • “rising uncertainty” over third arrow of Abenomics

Well that’s livened things up a bit !

Yen pairs on fresh session lows as Nikkei futures head lower, now down 0.7% since the headlines

Full Moodys report here