Pegging the Yen is the only solution left. Imagine what the Eur/Chf ratio would have been without SNB taking drastic action, baring in mind that EU issues have gotten way worse since they pegged the Chf .... 0.80 ? Swiss economy would have been crippled at best.
Japan is a country with immense trade surplusses, finance needs are for the largest part funded by the Japanese themselves and domestic savings are more than sufficient. This is what makes the Yen a safe haven par excellence.
But what they need to be aware of is the fact that strong Yen is hindering earnings and profits immensely, thus forcing companies to look abroad for production which will in turn cause unemployment among Japanese workers.
So in the end something will have to give:
- peg Yen in order to protect economy and Japanese society in general
Or
- do nothing or too little and cause massive unemployment and a cripple economy
In both scenario's the Yen will depreciate. Only difference will be the state the Japanese economy and society will be in !!!
Japan is a country with immense trade surplusses, finance needs are for the largest part funded by the Japanese themselves and domestic savings are more than sufficient. This is what makes the Yen a safe haven par excellence.
But what they need to be aware of is the fact that strong Yen is hindering earnings and profits immensely, thus forcing companies to look abroad for production which will in turn cause unemployment among Japanese workers.
So in the end something will have to give:
- peg Yen in order to protect economy and Japanese society in general
Or
- do nothing or too little and cause massive unemployment and a cripple economy
In both scenario's the Yen will depreciate. Only difference will be the state the Japanese economy and society will be in !!!
. 
