What bothers me with the Turkey comparison is the lack of domestically generated (wage) inflation in Japan. You have the ccy and bond tandem sell-off, which yes is classic sign of lack of confidence by the markets, but then no sharp round of re-valuation of price level like you did in Turkey which makes the real effective rate in Japan so ridiculously low. Lets remember that absolute levels of yields and inflation in Turkey hit 40-50%, very different to the Japanese markets, for now. Also while the BoJ still owns and reinvest too much of their JGBs they are not sitting on the long end anymore (front end yes), allowing long end real yields to rise which also is different to Turkey where real yields initially collapsed.

Question therefore is: is the market right to have no confidence and the price level adjustment is imminent because the government will force the BoJ to print instead of repatriating assets? Or is the market too fearful simply because of the scale of debt but given lack of inflation this is actually an incredible opportunity to buy cheap Japanese assets? As long as the Japanese government / captive Japanese institutions themselves seem unwilling to repatriate offshore assets and accept a yen appreciation I guess the market is being rational as there are multiple equilibria here. But the government has the ability (though maybe not the willingness?) to switch this equilibria which could happen very fast.