Senior LDP lawmaker and Abe advisor back on the wires in an interview with Reuters repeating yesterday's call which led to a rapid yen-sell response
- economy stagnating
- OCT 30 meeting may be appropriate timing for easing
- BOJ can hold off next week as it probably needs more time to gauge Q3 growth
- Japan should deploy fiscal stimulus of around JPY 3.5-5 trln
- more easing may spur further yen falls but demerits of weak yen can be offset by additional fiscal stimulus
- USDJPY is still around levels before Lehman crisis so "a bit more" gain still beneficial for Japanese economy
- levels pre Lehman around 124-125 could be among thresholds to watch out for
Comments once again lifting USDJPYa little but not significantly at the moment
USDJPY 120.62 in what has been general USD demand but EURJPY not impressed and is now chewing through the 136.00 bids