"The yen's violent ascent of the past 5 weeks was instrumental in the BoJ's decision, but will also reduce the likelihood of Tokyo adopting structural measures and may even postpone the next tax hike. The BoJ said it is ready to slash rates further, a decision, which reflects total desperation from the central bank as all other methods have failed."
"As Japan continues to devalue its currency via negative interest rates, China may well be able to continue weakening its currency, especially as JPY makes up for 15% of the CNY's index under the China Foreign Exchange System. The negative market implications from further CNY devaluation versus the positive implications of JPY devaluation force an asymmetric reaction to these events."
"China will have no choice but to further devalue its currency as CNYJPY rose 75% from 2011 to 2015 and fell by only 12% since June. Further devaluation is inevitable and its impact on global markets will be negative, including the rising yen."
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