...Reaches new highs just as the following happens. This is why consulting an economics textbook can only give the observer a very partial view of the entire global macroeconomic picture. Deflation is "supposed" to cause Yen appreciation. Euro players are backing up the metaphorical truck to the carry trade.
The Japanese monetary base in June fell 4.1% from a year
earlier to Y87.63 trillion, down for the 16th straight month,
preliminary data from the Bank of Japan showed. It followed a 5.7% drop
in May. Month-on-month, the monetary base decreased a seasonally
adjusted 0.5% at an annualized rate in June after a 25.6% drop in May.
And the Nikkei obligingly rises.