JPY likely to depreciate further against USD

Kikuo Iwata, Former Deputy Governor of the BoJ says, the Japanese economy is in a much weaker position than the current head of the BoJ Haruhiko Kuroda is trying to tell us and in the foreseeable future the BoJ will have to step up its Quantitative and Qualitative Easing programme. 

According to Iwata there is no sign of rising prices in Japan and instead there is a risk that the country could slip back into deflation. The inflation data Mr Kuroda is consulting would allows him to come to the conclusion that he will be able to reach the inflation target of 2% by mid-2016. 

"We stick to our view that the yen will depreciate against the USD", says Commerzbank.