The Japanese Yen has been one of the strongest currencies among the developed nations of the world since the end of LTRO (up 6%). This strength (repatriation flows and or carry unwind?) combined with a dismal domestic economic growth environment appears to have pushed Japanese firms to spend spend spend for growth. The latest and greatest Softbank/Sprint deal will shift this year's Japanese corporate acquisition of foreign companies to near-record levels. As Bloomberg Briefs notes, this will be the country's largest overseas acquisition on record - exceeding Japan Tobacco's $19bn acquisition of the UK's Gallaher Group in 2007. However, this growth-buying-spree does not come cheap as ratings are under pressure and while LBO-style financing might make the deal 'cheap' at first, at some point the cycle will re-emerge; but for now - it appears the BoJ (who we are sure are watching intently) should maybe leave intervention off the table until Japan owns it all again and becomes even more too-bigger-to-fail.
[7]
Chart: Bloomberg Brief