The Yen is losing value, but different to previous times is the japanese stock market not profiting from it. Even exporters are afraid of the low Yen, eventhough they should profit from it.
The Japanese Yen conitinued losing value against all expectations on Tuesday. For a short time the Yen went below the 0,008 to the USD. So one US Dollar was worth more then 125 Yen for a short period of time. Last time the Yen was that low in 2002. Solid economic data in the US supported the expectations the FED would increase interest rates in the end of the year. Also against the Euro the Yen went down to 136 Yen for a Euro.
But this negative record is political and economical painfull for Japan. Analysts say the momentum could drag the Yen even deeper. On the other hand the signals for a move back up are increasing.
So far a decrease in Yen increased the value of exporting companies, which is not the case anymore. Even the car manufacturer increased less than the average of the Nikkei. Not only the companies with focus on the national economy are suffering from the weak Yen, but also the export oriented companies can not increase there profit from the weak Yen anymore, since they also import a large amount of raw materials.
Monetary easing is also not going to take place in Japan, since Japan is in negotiations with the US about a free trade agreement, for which the negotiations will become more difficult, if Japans currency continues to lose value. Economists in the US are afraid of a currency war which could cost a lot of Jobs in the US.
JP Morgen analysts expact the Yen to be back at 105 Yen to the USD by 2016. The monetary flow increases the surplus on current accounts in Japan, which will boost the Yen in the longrun.
A further argument for a change in trend is Japans monetary policy. So far the Yen got carried by the expectation the Bank of Japan would by more gouvernment bonds soon and pump more money into the markets. But these expectations are not very likely to become true since the comments where pointed in a different direction on the last meeting. Analysts of Barcleys Capital shifted the target date for a further monetary easing from July 2015 to April 2016. This could increase the speculations on a crash in of the Yen in the future..