According to the latest BoJ meeting minutes, The Bank of Japan will continue monetary easing. During the latest meeting, it was decided to expand the bond purchase terms up to 3 years. Therefore, the central bank will get an opportunity to purchase long-term bonds in order to cut the yield.
In the meantime Fitch Ratings downgraded Japan’s credit rating due to its higher public debt. The rating agency expects Japan’s public debt to grow further up to 239% of GDP. This will be the highest debt-to-GDP ratio in the world.
Forex
In the meantime, USDJPY is forming a mid-term correction against the long-term downtrend. According to , USDJPY is forming sub-wave В(С) inside the a long term downswing - wave А/В of wave level Weekly. A break below 79.01 will resume the downtrend in the form of wave А(С)/С. The closest levels of support are located at 78.85, 78.32, 77.64. A break and consolidation above 80.14 will indicate a trend reversal. A break above 80.36 will confirm the supposition, thus initiating a rally (wave A/B):
