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Japan's government lowered its fiscal 2026 growth projection to 0.9%, citing surging crude oil prices and yen depreciation that inflate import costs for the energy-dependent economy. The downgrade complicates the Bank of Japan's normalization path: imported inflation argues for tightening while weaker growth argues against, keeping USD/JPY and JGB yields in a two-way tug that feeds global rate and carry-trade volatility. Watch Brent/WTI trajectory tied to Middle East tensions and any BOJ or MOF signals on yen intervention, since a disorderly yen move could spill into broader risk assets including crypto via carry unwinds.
As a Macro signal, watch whether it changes price action, volatility, or flows around JPY=X, CL=F.
Original Source: BeInCrypto
This page is market information analysis, not investment advice.
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