Press reports are pointing to a BOJ move as early as March, but I think the majority of market participants don’t believe that story because such a shift could create volatility before fiscal year-end in...

Everyone is waiting for an end to the tightening cycle, so that’s why the dollar is vulnerable.

Short-term rate expectations remain the single most important factor for dollar/yen,

The figures are not so bad and modestly yen positive. The Bank of Japan is on a solid track toward a policy shift this April.

might need some more time.

Fukui is smoothing the way to end its deflation-fighting policy by making those comments. Having that clear goal, he is persuading politicians and the market.

Some market participants are beginning to be concerned about the risks of an earlier rate hike.

Expectations of further Fed rate increases haven’t peaked yet, while rate hikes by the Bank of Japan are a long way off. Along with Japanese investors continuing enthusiasm for overseas assets, that will likely push...

In general reducing the public debt will require drastic public sector reform. To implement drastic reforms, Koizumi needs to gain public support.

Mr. Koizumi remains willing to pursue structural reforms, so long as the economy permits. He’s not going to abandon reforms. However, realistically it’s also difficult to assume very quick progress.

The euro has upside risk should economic data such as German retail sales give the market a surprise.

In the near term the economic outlook is still quiet bleak.

He hasn’t done any reforms yet, so they would like to see the results.

He’s likely to make more bullish comments on the economy and deflation. That will put upward pressure on short-term interest rates, which is yen positive.

At least for the next half a year the situation is likely to remain tough.

Yen buying seems to be stalling after an initial round of optimism about the Sept. 11 election receded,

The BOJ is expected to end its so-called quantitative easing policy of flooding the economy with cash by the end of April. That will put upward pressure on short- term interest rates and reduce liquidity...

Pressure on China to revalue against the dollar leads other Asian currencies, including the Japanese yen, to strengthen against the U.S. currency.

The near-term outlook for the yen remains bearish, … obviously it will be difficult to come up with a rate hike and we do perceive some political pressures.

The markets have already priced in at least one rate hike and are beginning to price in the second rate hike by year-end. Combined with the steady recovery of the Japanese economy, those expectations are...

It’s a very gloomy picture. We can reasonably expect a very weak economic picture for the first and second quarter.

We cannot expect a grand coalition to undertake bold and speedy reforms, especially of the labor market and tax system. The euro looks weak now.

The trade surplus figures showed strong exports and domestic demand. This shows the economy is robust enough to withstand a rate increase later this year, supporting the yen.

It would be quite market-moving if the second-quarter GDP data comes in above consensus.

We cannot expect a ‘grand coalition’ to undertake bold and speedy reforms, especially of the labor market and tax system. The euro looks weak now.

The current-account-surplus argument is always yen supportive.

Japanese institutional investors seem to have sought returns by selling dollar-denominated assets. That kind of repatriation is generally yen positive.

Good economic figures will surely be euro supportive. The euro-zone economy is expanding faster than expected.