http://www.money-rates.com/keyrates.htm

Japan is rather afraid of recession of economy than inflation. Japan have never had hyper inflation like Europe after WW2. That is why Bank of Japan keep the interest rate very low. World currency investors and trading companies buy US dollar for trade settlement. These 2 are the reasons why Japanese Yen stay low (cheap) always.

But this have a profound effect on Japan. Japanese companies can receive tons of money from the trade settlement. Because the payment for the trade is done by the US$. It increases the trade surplus of Japan.

BTW, the digits of Yen are different from US$.

US$ has cent, as in, US$1.18(1 dollar and 18 cents).

Japanese Yen don’t have cent.

Current exchange rate is about US$1.18 = JPÂ¥100

In other words they make too much and sell too little.

All because of the other countries (3rd world) that are in competition as well as the sleeping giant China.