Fitch downgrade unlikely to have major material impact on USD/JPY

As Pete reported yesterday during the London session, Fitch downgraded its Japan debt ratings but from what I’m reading this morning, this downgrade is unlikely to have any large material impact on USD/JPY flows. It will of course impact on sentiment but its unlikely to cause any heavy selling of JGBs or any significant Yen selling, as most JGBs are domestically owned.