Besides his big talk, all of his fiscal policies are totally back to the past.

That’s a yen negative I suppose – Abe’s policies are likely going to bring forward the day of reckoning for Japan’s public finances. Coupled with looser monetary policy and perhaps it does make sense that the yen is going down (at least until the new BOJ governor is revealed and shows his/her hand).

The thing is, I don’t know what sort of action the non-Japanese are expecting from the BOJ.

A 2% inflation target is a must now, but just having a target doesn’t mean it will get achieved. The BOJ introduced a 1% target last year but that didn’t do much, although it did produce that nice rally in the early months of the year.

But this time around, exactly how much QE or whatever will the BOJ need to do to satiate the trend? Does QE really help anyway?

I’ve not read a thing for any Japanese analyst who believes this story.

Macro side though Japan is running a trade deficit at the moment. In the past any yen cross rally would be hammered down by Japanese exporters, but with importers in control I suppose it has given the yen more room to fall.

There aren’t many dips, but buying them, such as the one earlier this week, seems to be the best strategy at the moment.