Says the yen needs to weaken in nominal terms to allow the Bank of Japan to alter current policy settings
- would make it easier for the BOJ to implement a change as it reduces the possibility of importing deflation
- Says USD/JPY may need to fall at least halfway between the levels when Governor Kuroda warned of a currency slide in June 2015, and when the BOJ announced a negative rate policy in January 2016
- i.e. to around 118
- "Ironically, the latest yen appreciation on speculation for a BOJ policy adjustment is making such a move difficult" (referring to the recent gain for the yen , slide in USD/JPY)
Comments from Osamu Takashima, a Tokyo-based chief strategist at Citigroup. Via Bloomberg.
