it means Japanese investors will have to pay higher interest rates on borrowed yen. Yen to USD exchange rate: Mexico and US are telling Japanese investors the free loading days are over. We're raising interest rate: . "Chicago Fed President Goolsbee said last month’s jobs data “came in weaker than expected, but does not yet look like a recession” as US economic growth continues at a “fairly robust level.” Markets rate the odds of a 25bp rate cut at the September 17–18 FOMC meeting at 100% and a 50bp rate cut at the September 17–18 FOMC meeting at 95%". changes in interest rate differentials will drive VIX or vice versa
1- Japan is an expensive country perhaps due to the country location in the area that is prone to natural disasters 2- Japan lacks of natural resources. it has to import a lot of materials 3- Japan has accumulated a lot of debt. yet it has managed to keep the inflation low. someone in the government might have cooked the book.