The newly-formed Japanese government is planning to announce another round of economic stimulation in the country. The new program is estimated at ¥12 000bn.
According to Kyodo News and Yomiuri (Japanese editions), it is planned to expand the budget spending plan. Some ¥6 000bn will be spent on the implementation of multiple governmental project within the next 2 months. The Prime Minister is planning adopt the new plan by the end of this week.
He is known as the supporter of quantitative easing. He assumes that higher public spending will support the national economy, simultaneously eliminating deflation. Despite the fact that the current public debt is twice as high as the national GDP, the Minister of Finance says the government should not limit the debt to ¥44 000bn.
Forex.
According to , the Japanese Yen keeps strengthening against the US Dollar. Nevertheless, the experts report that USDJPY is still forming wave an upswing represented by wave 3 of level Daily 3.
A further rally (above 88.40) will probably encounter resistance around 89.10,89.50. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 86.76 (as shown below).
