The Weak Yen Is Calling

With the Nikkei recently hitting five-year highs, the yen weak and Japan's economy showing signs of picking up, it's been a great time to buy Japanese stocks.

The questions now, though, are just how much further the yen will deteriorate and for how long.

The weaker yen is good for Japanese exports but it also heightens inflationary pressures, especially considering that Japan needs to import 80% of its energy needs. As oil is again flirting with $60 a barrel, the Nikkei 225 stock average fell 0.8% to 15,423.38 overnight. However, the Nikkei is still within a hair of 15,500, its best level in five years and one that it briefly surpassed on Monday. ...