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

<p> 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.</p><p>He's right about the improvement in the economy, that's what the release of today's survey showed:</p><ul><li><a href="https://www.forexlive.com/centralbank/boj-q2-tankan-improves-from-q1-large-manufacturing-9-vs-5-expected-and-prior-1-20230702/" target="_blank" rel="follow" data-article-link="true">BOJ Q2 Tankan improves from Q1: Large Manufacturing outlook 9 (vs. 5 expected and prior 1)</a></li></ul><p>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!</p><ul><li><a href="https://www.forexlive.com/centralbank/firms-surveyed-by-boj-expect-cpi-to-be-still-above-the-banks-2-target-in-1-3-5-years-20230703/" target="_self" rel="follow">Firms surveyed by BOJ expect CPI to be still above the Bank's 2% target in 1, 3 &amp; 5 years</a></li></ul><p>USD/JPY today is behaving like the BOJ will hold onto loose policy though, making its way back higher:</p>

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