Japan's budget proposal for the 2023-2024 fiscal year (FY) could be as high as 114 trillion yen, the Nikkei reported, adding that the government could issue more than 35 trillion yen in bonds, per Reuters.

The news also quotes Friday’s comments from Finance Minister Shunichi Suzuki who said Japan must stick to its target of a primary budget surplus by the 2025 fiscal year, even as a planned increase in defense spending raises the spectre of worsening already dire public finances.

USD/JPY retreats from 137.00

The news appears to impress the Yen buyers who recently cheered hawkish expectations from the Bank of Japan (BOJ). That said, the USD/JPY pair drops to 136.80 by the press time.

Also read: Bank of Japan Preview: Policymakers can boost the JPY