Alex Bobrov
The Japanese government feels optimistic towards tax revenues after economic recovery. The Prime Minister says that tax revenues will exceed the proceeds from bond sales for the first time in 4 years.
The new financial year will start in April. Tax revenues are expected to reach ¥43 100bn in the new financial year. At the same time budget spending is expected to reach ¥92 600bn. This information is provided by the Japanese Department of Finance.
Better expectations are based on higher corporate earnings even despite the fact that the authorities stopped nuclear plans, which increased Japan’s energy expenses.
The ruling party offers to raise the income tax form 40% up to 45%, as well as some other taxes. Analysts feel skeptical towards this idea.
Despite the skepticism, the Japanese government reconsidered the forecast for the national economic growth in the forthcoming financial year, thereby increasing it from 1.7% up to 2.5%.
Forex.
According to , the Japanese Yen keeps weakening against the US Dollar. The experts report that USDJPY is forming a big-scale upswing represented by wave 3/C.
A further rally will probably encounter resistance around 92.77. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 88.05 (as shown below).
Alex Bobrov
