A weaker yen increases the value of overseas earnings when they are converted into Japanese currency, but a stronger yen has the opposite effect. At the same time, the stronger yen offered relief for households and import-dependent companies. For households, the stronger yen and lower oil prices were the most positive developments of the day. A stronger yen directly addresses part of that pressure by reducing import costs. The combined effect of a stronger yen and lower oil is potentially significant for Japan’s cost structure.