In European trading on Monday (Oct. 24), / rose sharply, temporarily trading at 149.15, up 1.16 percent.
Japan’s government has urged caution about the impact of wild market swings on the economy in a spending plan designed to cushion the blow of rising living costs, according to a draft of a spending package document.
The Japanese government warned that “global recession fears are rising” and could hurt consumption and capital spending.
The document cited the need for the government and central bank to deploy the appropriate fiscal and portfolio to ward off economic risks, suggesting a large spending plan is likely.
Prime Minister Fumio Kishida is likely to approve the plan at a cabinet meeting on Oct. 28, the same day the Bank of Japan wraps up a two-day review.
The BOJ is widely expected to maintain its ultra-loose policy at its policy meeting.
‘It wants the BOJ to guide appropriate monetary policy to achieve its price target in a sustained and stable manner, while keeping a close eye on the impact of financial market volatility,’ the government said in the document.
On the plus side, a daily close above 149.50/60 would revive the bull market with a stronger rally to the psychological level of 150.00 before a much-needed correction later.
