This article in today’s FT effectively makes the case for the USD to rise against the JPY. When the Japanese lending plan was announced, I was sceptical about it, because it was small and appeared to be a cosmetic response to pressure from the new government. But it seems to be having an effect.

On the other hand, I also wonder whether the simple fact that there are stories about Japan in the papers, and that they show that politicians are at least trying to get to grips with some of the country’s problems, might eventually be positive for the NKY and the JPY.