S&P has recently announced that Japan may get its sovereign rating cut in the near future. For reference sake, Standard & Poor’s is a major international rating agency. The current rating of Japan is "АА-". The forecast is obviously negative. The agency’s experts report that they question the Japanese government’s ability to resume economic growth and curb deflation.
In particular, the experts say that the successful implementation of Premier Abe’s initiatives aimed at stimulating economic growth looks questionable because they are based aggressive quantitative easing and other questionable measures.
Forex
The risk seems to be supporting the long term-trend aimed at weakening the Japanese Yen against other majors, including the US Dollar.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of USDJPY. The currency pair is consolidating.
A further rally will probably encounter resistance around 99.75, 99.88 и 99.94. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 98.58 (as shown below).
