Yen gains after Abe's adviser says it is too low

there’s no need to force inflation” to the bank’s 2% target level. these guys dont know if there coming or going, inflation has stalled, next will come deflation again. I dont see how they can manage 105yen/$ when it seems highly likely that more stimulus will be coming, and with the US set to raise interest rates near the end of the year.

Hamada tried to back-track on his comments yesterday, in the wake of the reaction to them.

As I have been saying here for a while, the government seems to like the yen at around 120 to the US dollar, and he probably got the word to "fix it" after getting into some academic theorizing on Monday.

But so long as Abe's government are running the policies they are, with super easy money and fiscal indiscipline, the odds are that the yen continues to weaken due to the underlying pressures, IMO.

Hamada obviously knows a thing or two about economics and policy, but I don't think he has any special insights as to where the yen will actually go.

inflation has stalled, next will come deflation again.

We'll see. Towards the end of the year the effects of the oil price plunge will come out of the CPI data. And actually other measures of inflation are running above the CPI numbers. (Ask people at the supermarket and JT if they think prices have stopped rising?)