The incoming Japanese finance minister says he is confident the government can secure financing for a massive jump in social welfare spending that helped his part sweep to victory. An extra budget for 2009/10 may provide a few trillion yen with more to come from a seperate package.
One factor in recent JPY strength is clearly the anticipation that more JPY will be needed to fund domestic debt, leaving less to ship off-shore to be parked in places like the US Treasury.
USD/JPY trades at 90.88 after holding mega-important support at 90.0010 earlier today.
