Published by Jamie JemmesonFamed currency strategist Eishi Wakabayashi has forecast that the yen will strengthen to a record 74 per dollar by 2011 due to meek efforts to control inflation.Now the head of Tokyo-based Wakabayashi FX Associates Co, Mr Wakabayashi rose to prominence after predicting the Japanese currency would climb to an all-time high in 1995.Speaking to Bloomberg, he said the Bank of Japan (BoJ) needs to alter its "fundamentalist" stance on tackling inflation while neglecting to introduce fiscal instruments to encourage a return to growth.He added that any direct intervention in currency markets would be "foolish" and would not halt the advance of the yen.Instead, Mr Wakabayashi called for the BOJ to be invested with greater powers to stabilise prices and expand employment, akin to the capabilities of the Federal Reserve.His comments followed further speculation that the Japanese government would look to intervene directly to curb the rise of the yen after a statement from prime minister Yukio Hatoyama declaring that the currency cannot be left to appreciate "as it is".For more information on foreign exchange treasury services and risk management, visit our Corporate FX site