I mean, really? Nothing contributes more to FX than monetary policy. It couldn’t be more direct unless it was the BOJ itself buying and selling.

More:

• Inflation starting to rise but not convinced yet BOJ’s target will be achieved in a stable, sustained manner
• Responding to short-term FX moves with monetary policy would heighten uncertainty and wouldn’t be good for Japan’s economy
• We must be cautious about shifting towards monetary tightening as downside risks to Japan’s economy are increasing
• Japan’s prices rising at a faster pace than I initially thought
• Japan is still half way in meeting BOJ’s 2% inflation target
• There is a growing chance Japan’s core-core inflation , which strips away impact of volatile fresh food and fuel costs, may rise to 2% in Oct
• Japan’s economy picking up despite impact of rising commodity prices

On the one hand, it’s insane that Japan is still pinning yields. On the other, it makes for an interesting control group in the global inflation landscape.