How vulnerable is Japan to geopolitical risks?

Events in Ukraine and elsewhere in the emerging world have brought into focus Japan’s exposure to geopolitical risks due to its reliance on imported energy and the yen’s safe-haven role. Barring some unforeseen conflagration, though, the impact of further increases in global tension should be fleeting. When it comes to the yen, for example, with monetary policy likely to remain loose for an extended period, the currency should continue to weaken over the next few years even if geopolitical turmoil leads to temporary episodes of strength.