Japanese produced goods will become less competitive on the global market place as the yen appreciates and that's going to slow the recovery process, not only in Japan, but Asia as a whole.
This is a very fragile recovery process. It's been reliant on these low borrowing costs. If we remove them, we effectively deny the economy its support.
This tells us nothing about the strength of a recovery next year,
Good news on the recovery front. Obviously, equity investors feel that this is an environment that produces better earnings.