Japan is also fighting a strong Yen with a few strategies.
- Subsidize Manufacturing
- Borrowing More Money
- Sell Foreign Currency for Yen
By subsidizing manufacturing, Japan is trying to increase employment and Foreign Direct Investment. In the short run, this strategy might work. If these programs continue into the medium run, this will strengthen the Yen.
BOJs borrowing more money is mostly for reconstruction purposes. It should strengthen the Yen, until its promises to its citizens can no longer be kept.
By selling foreign currency, the BOJ is attempting to influence the Forex market directly. While this will have some marginal effect, it will not be enough to keep the Yen down.
The best thing weaken the Yen would be if Europe had some sort of sustainable plan to deal with the sovereign debt crisis.
Here are links to the information I used
BOJ results
http://www.boj.or.jp/en/research/brp/rer/rer111020.htm/
What the Japanese gov is doing about a strong Yen
http://www.forexpros.com/fundamental...bsidies-102884