It's still on.
USD could collapse against the YEN and China will make sure it stays that way (China bought 5.3billion in June 2010). China will slam Japans export market down (buying more YEN) and force Japanese firms to either set up in China, or disappear. A form of forced protectionism, mixed with BoJ quantitative easing (money printing) and low rate policies.
All and all if Japan faces a huge problem with it's debt and credit rating we should see a reverse with what happened with the EUR, the YEN will skyrocket, exports will be hammered. Should send Japanese stocks south and company profits even further south.
This might freak markets out as USD v's YEN collapses further.
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