The IMF experts expressed concerns over Japan’s fiscal health during the recent visit to Tokyo. They say that the forthcoming consumption tax increase won’t be enough to eliminate all the economic threats.
According to the information provided by the IMF, Japan’s public debt will keep growing in 2013 to make 250% of the national GDP.
The consumption tax hike up to 10% has already been approved by the Japanese parliament. It will take effect in 2015.
Nevertheless, the IMF experts urge the Japanese authorities to increase other taxes. They say that in order to improve the situation, Japan needs to raise some $250bn in taxes (5% of GDP) a year within the next 10 years.
Forex.
According to , the Japanese Yen has weakened a bit against the US Dollar but is still strong. The experts report that USDJPY has finished forming a downswing represented by wave А/В of level H8.
A break below 77.94 will start another major downswing represented by wave A/B of Daily. If this is the case, 77.77, 77.60 will turn into the closest major levels of support. A break above 78.86 will trigger a bullish move (А/В of Daily2). The 79.21 high will turn into the closest major level of resistance.
