Moody's: Japan's sales-tax hike delay is credit negative

The latest review by the US ratings agency, Moody’s, on Japan, underscores challenges likely to be faced by the Japanese economy following the sales-tax hike postponement decision.

Key Points:

Delay makes fiscal goals more challenging

Tax delay and planned fiscal stimulus raise further questions over Govt's ability, willingness, to meet fiscal goals

Meanwhile, USD/JPY hovers above 109 handle, awaiting fresh impetus from the ECB decision and US ADP jobs data due later today.