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Japan will be caught in the crossfire of US-China trade war

Conflict threatens to destabilize yen and delay end of easy money

| China
Bank of Japan Gov. Haruhiko Kuroda is in for a new set of worries in his second term.

Let us sum up Haruhiko Kuroda's first term at the Bank of Japan in two words: deflationary mindset. In 2013, Tokyo's central bank chief set out to end decades of deflation via a monetary jolt the likes of which markets had never seen before.

But two very different words may dominate his new term, which starts today: Donald Trump.

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