While economic data out of Japan on Friday showed that the country was still mired in deflation, with consumer prices falling 0.1 percent year on year in January, one expert thinks there still exists pent up demand among Japanese consumers.
"Consumers in Japan are flushed with cash, waiting to spend the money," Glen Wood, Partner and Head of Sales at research firm Ji Asia, told CNBC. "Any sign of inflation and the Japanese consumer will spring back to life."
He added that Japanese consumers were postponing their spending at the moment on the expectation that prices would fall further, but once there is an indication that prices are set to rise consumers could start spending again.
The Bank of Japan recently set an inflation target of one percent, which Wood said was a step in the right direction. "Inflation targeting will work. The message itself is very important, it does help change market sentiment," he said
He added that the Japanese government could do more to boost the economy, and spur inflation by further increasing its asset-buying scheme, and printing more yen .