The Nikkei says the dollar is likely to continue to fall, face selling pressure, for the next month or so.
The yen rate will float between 101.5 and 108 yen in Feb/Mar.
5 reasons why:
1. U.S. delinquencies in auto loans, credit card payments, weak employment, risk of recession
2. jittery financial markets, stock prices - investors lean to yen-buying
3. Speculator have cut their yen short positions
4. hedge funds will buy the yen if the currency climbs
5. Japanese investors have no incentive to sell the yen as the yen strengthens.
In short, if you are a yen salary things are looking up. If not, then it's likely to be a rough few months.
