Having lived through a massive JPY rally following the Kobe earthquake in 1995, I’d expect the BOJ to be far more proactive this time around. There are already rumors that Kampo, the foreign-investment arm of the Japanese postal savings system is buying dollars at 82.00.
I don’t think neighbors would begrudge Japan keeping the currency from gaining in the wake of a massive natural disaster…after all, they intervene every day…
Stability is the most likely outcome, in my view…
