USD/JPY has now risen 10 big figures since Mr Abe, whilst still in opposition, signposted his intentions to spend Japan’s way out of deflation. All of this chat obviously depends on the BOJ playing ball, and as yet we haven’t seen any major new policies. In essence, the move from 79 to 89 has been verbal intervention. If the BOJ seems to be showing even the slightest unwillingness to join in the party, then the JPY move will be unwound very sharply.
