Take a look at a 30-year chart of the Yen to see if Japan is trying to weaken its currency in a “beggar thy neighbor” policy.  The Yen has appreciated 50% against the dollar since 2007 and is at an all-time high in nominal terms and stronger in real terms.   As mentioned in our earlier post,  Japan is not engaged in a currency war, but a sandbagging mission to prevent the Tsunami of Dollars from flooding its economy,  particularly the export sector.