TOKYO, Jan 28 (Reuters) - The yen has room to fall further against the dollar, with many seeing 95 as an appropriate level, Heizo Takenaka, an economist with close ties to Japan's ruling Liberal Democratic Party and a former economics minister, was quoted by the Wall Street Journal as saying.
'This correction has just started, it's not fair to say the yen has depreciated too much,' Takenaka told the Journal in Davos, Switzerland on Saturday.
Takenaka, who served as economics minister under former LDP Prime Minister Junichiro Koizumi, was referring to how the Japanese currency has risen over the last few years, the newspaper said.
The yen hit a 31-month low of 91.26 to the dollar on Monday, led lower by Prime Minister Shinzo Abe's calls for the Bank of Japan to adopt aggressive monetary easing to pull the country out of deflation and revitalise the ailing economy. It has fallen more than 13 percent since mid-November when Abe began making those calls as part of his election campaign.
Last week, the BOJ agreed to double its inflation target to 2 percent and made an open-ended commitment to buying assets from 2014, measures intended to lift the economy out of its fourth recession since 2000.
'There's not a very scientific way to thinking about where the yen will end, but lots of people think a range around 95 to the dollar is appropriate at the moment,' said Takenaka, who is seen as a dark horse candidate to replace BOJ Governor Masaaki Shirakawa when he steps down in April.
On Saturday, Japan's Economics Minister Akira Amari rejected criticism that Tokyo's extraordinary fiscal and monetary stimulus programme was aimed at weakening the yen and undermined central bank independence.
He told the World Economic Forum in Davos it was up to the market to determine the currency's exchange rate, and the BOJ had chosen independently to sign a joint statement with the government on actions to fight deflation and revive economic growth.
(Reporting by Dominic Lau; Editing by Edwina Gibbs) Keywords: JAPAN YEN/
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