Japan Matsuno believes improvement in the BOJ Tankan reflects gradual recovery of economy

Japan chief cabinet secretary Matsuno says that he believes the improvement in the BOJ Tankan reflects a gradual recovery of
the economy, but will continue to closely monitor trends in overseas
economies and prices.

He’s right about the improvement in the economy, that’s what the release of today’s survey showed:

• BOJ Q2 Tankan improves from Q1: Large Manufacturing outlook 9 (vs. 5 expected and prior 1)

The inflation expectations part of the survey is interesting for those watching Bank of Japan monetary policy. Companies are not convinced inflation is going to drop under the BOJ’s 2% target. For the next five years!

• Firms surveyed by BOJ expect CPI to be still above the Bank’s 2% target in 1, 3 & 5 years

USD/JPY today is behaving like the BOJ will hold onto loose policy though, making its way back higher:

This article was written by Eamonn Sheridan at www.forexlive.com. Source