Recently we closed out our long Yen position ([[FXY]], [[YCL]]). The Bank of Japan (BoJ) has already announced that it will be targeting 1% inflation in Japan to try to break the deflationary cycle which has gripped their economy over the past couple decades. At the time of our previous post, the Yen was selling off sharply against the US Dollar and many pundits were making the argument that the exchange rate was headed down an irreversible path of long-term devaluation.