Inflation figures released today point to a slowing of inflation in Japan. Consumers have pulled their horns in after last April's consumer tax increase and there is now no pressure under prices.
Inflation is 1.1% and falling. The BoJ's target of 2% by April next year looks near impossible to achieve. PM Abe has put a load of responsibility on the BoJ head to get the economy started and after trillions of dollars of easing it looks like Japan's economy is going backwards as global deflation syphons gains from exports.
So it looks like Japan is cactus.
Question is how to take advantage of that. Remembering that the BoJ is the buyer of JGB (bonds) a strategy shouldn't include a bonds short, not yet anyway.
