Japan's Reliance On A Massive $20 Trillion Carry Trade Poses A Precarious Situation If Faced With Rate Hikes Or Sustained Inflation.

The BOJ can not afford a stronger yen , because the government of Japan is engaged in a massive $20 trillion carry trade:

First, recall that the carry trade involves borrowing in one currency cheaply (Japanese yen) and converting that borrowed money into a foreign currency which offers a superior yield.