US ratings agency out with its latest Japanese review 13 June 2016
- versus Stable prev
- outlook revision primarily reflects Fitch's decreased confidence in Japanese authorities' commitment to fiscal consolidation
- no longer expecting sales tax hike in its base scenario
- BOJ already expanding Japan's monetary base by about 16% of GDP annually, may face constraints in expanding qualitative and quantitative easing
- Japan's credit profile benefits from sovereign's exceptional strong debt tolerance and funding capacity
Meanwhile USDJPY 106.05 again after failing around the 106.20-25 I highlighted earlier
"Keep smiling or they'll cut our ratings even further"
