Possible BoJ Shirakawa successor welcomes further Yen depreciation - WSJ

FXstreet.com (Barcelona) - The Yen still has room to depreciate further, with 95 in USD/JPY seen by many as an ideal rate, Heizo Takenaka, key economic advisor to Japanese Prime Minister Shinzo Abe, and one possible candidate to become the next head of the BoJ in April, told The Wall Street Journal on Saturday

"The yen's recent fall was a result of a correction from an excessive strength, and that the BOJ's latest easing measures were aimed at beating deflation, not a weaker yen" said the WSJ, citing Mr. Takenaka.

"This correction has just started, it's not fair to say the yen has depreciated too much" the advisor said, being cited by the WSJ.

"There's not a very scientific way of thinking about where the yen will end, but lots of people think a range around 95 to the dollar is appropriate at the moment," said Mr. Takenaka.

Takenaka failed to discard more aggressive polices, saying that buying foreign bonds instead of local JGB purchases may be an option to consider, should the latter prove inadequate.

More quotes from the WSJ: "My view is first we should try purchasing Japanese government bonds from the market, I think that will have a positive impact. But if that is not enough, to achieve the target, other things like purchasing foreign bonds could be considered."