According to Nikkei, Japan’s primary deficit will reach ¥15.400 or 2.8% of GDP in 2020. Even tax hikes won’t be able tom improve the situation.
The preliminary estimation shows that Japan is unable to fulfill its international obligations on time. The Japanese government will probably try to improve the situation by increasing consumer taxes (from 6% up to 10%) along with spending cuts.
Forex.
According to , the Japanese Yen keeps strengthening against the US Dollar. The experts report that USDJPY has finished wave А/В of Н4.
A further downswing will probably meet support around 78.28 and 78.15.. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 78.78 (as shown below). In this case, the price may encounter resistance around 78.97, 79.05/08, 79.13.
