S&P Global Ratings upgraded Japan’s A+ outlook from “stable” to “positive”. S&P noted stronger economy should set the stage for fiscal improvement in Japan. The positive outlook reflects healthier growth prospect, in both real and nominal terms. The current rating also reflect Japan’s formidable external position, diversified economy, political stability and financial system stability. Nonetheless, it also pointed out that While Japan’s external balance sheet is strong, Government finances are weak. And that is a significant constraint of its creditworthiness.

Some analysts view that outlook upgrade as an endorsement of Abenomics too.

But for now, JPY is not listening to the news and stays broadly pressured.

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