USD/JPY flows: Stimulus on its way

Over the weekend, Nikkei reported that the Japanese government is expected to unveil ¥17tn stimulus focused on cost relief and AI–chip investment. It is as widely expected Takaichi is pro-spending and this package seems to be strategical, likely focusing on SMEs, energy rebates and investing in critical area.

While it maybe good news for Japanese locals now, it will definitely further weakens the JPY when market look into how the plan will be financed. USD/JPY is trading 0.06% higher at 154.60.