Toyoo Gyohten, a former currency policy chief at the Finance Ministry, says 2016 will be the year for Prime Minister Shinzo Abe to take up the mantle of stimulus from the Bank of Japan, which has done all it can to revive the economy.

While the yen will hold losses from a four-year decline, it is unlikely to weaken beyond ¥130 per dollar as the Federal Reserve raises interest rates only gradually and the BOJ keeps policy on hold, said Gyohten, who was involved in negotiations leading up to the 1985 Plaza Accord to weaken the U.S. currency.

Central bank bond buying has come at a price, pushing yields on shorter-term notes below zero percent and causing some primary dealers to complain of low market liquidity.