The Japanese authorities keep implementing the austerity plan aimed at reducing the public debt. The draft bill implying sales tax hikes was approved by the lower chamber of the Japanese parliament yesterday.
At this point, the sales tax is 5%. The draft bill implies increasing the tax up to 8% in April 2014 and up to 10% in October 2015.
Tougher fiscal policies were initially offered by the Prime Minister Yoshihiko Noda. The decision caused ambiguous reaction.
The Japanese nation keeps ageing, which results in higher budget spending. Tax hikes will increase the budget income. Basing on the fact that the opposition backed the tax hikes, the draft bill is expected to be approved by the higher chamber this week.
Forex.
According to the currency strategists of , USDJPY has made a bearish FZR around 79.22 and is currently forming wave А(С)/С inside a major downswing – wave А/В of wave level Daily. The closest major levels of support are located at 78.78 and 78.25. The current bearish wave will be completed as soon as the price breaks and consolidates above the top of the MF sloping channel and pivot 79.85.
