Japan the next short?

The Japanese Yen has been rallying after the Fed decided not to taper.  The stock markets in the US are also in decline after the remarks from the Fed meeting are being digested (fed governors speaking on circuits doesn't hurt either).  The interesting part of this scenario is the lack of increase in the Dollar, specifically to the Yen.  In times of trouble, the Yen may still be proven as a safe haven and rally further to the Dollar and other asset classes (notably emerging markets).  This could provide an opportunity to build short en positions to a variety of other currencies and short the Japanese indices as well.

A step back to look into this theory is that the Japanese government will have to take measures to increase tax revenues, potentially slowing the economy, or face a potential distrust in the ability to manage their debts.  Overall t is my view that Japan will struggle to retain a strong commitment to Abenomic policies and manage the interest rates and economic growth of the country.  While this is a long term play it is good to pay attention  to the region over time and build into longer term, positive carry positions in the long run, and shorts to markets on shorter term scares (which could hedge and remnants of a move to Yen in a flight to safety during budget talks).