Premier Abe underlines that the current interaction between the Bank of Japan and the market is tight as never before. He expresses hopes that the central bank will do its best to stabilize the bond market, including certain operations in the currency market.
The government’s concerns are connected with the expected possibility of higher yields affecting the national economy. Therefore, the government is closely watching the bond market to anticipate and prevent possible negative effects by controlling the bond emission.
At the same time, Premier Abe says the current state of governmental finances is rather poor. He says the government’s current primary goal is to support market confidence along with conducting weighted fiscal policies.
Forex
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of USDJPY. The Japanese Yen is currently recovering as the currency pair is retracing against the recent rally.
A break below the 100.65 low will show the start of a new downswing – wave A/B of a senior timeframe. If this is the case, the price may have difficulty overcoming 97.02 and the bottom of the MF sloping channel. Alternatively, A further rally may encounter resistance around 104.05, 104.50, 105.58.
