The Japanese yen hit a new 15-year high against the US dollar today as prime minister Naoto Kan hinted at further currency intervention.
The Bank of Japan has cut interest rates to virtually zero in an effort to revive the ailing economy.
Eclectica founder Hugh Hendry has initiated a substantial short position in Japanese credit, on expectations of a sharp correction in the Chinese growth story.
Warren Buffett is expecting "large investment opportunities" to develop in China as the country continues its rapid expansion.
Japan's central bank is believed to have intervened for the second time in a week to combat the rising yen.