David Roche states that Japan does not desire a weak yen, but rather a stable currency.

• Roche stated that the Japanese are not seeking a significantly strong yen, but rather a relatively stable one, as they do not want it to plummet further.
• The Japanese yen has experienced a significant decline against the greenback, reaching its lowest point in over three decades last week.
• Japanese authorities have reportedly invested about $60 billion in two interventions, which have strengthened the situation.

According to veteran investor David Roche, Japan is not looking for a strong yen but instead wants a relatively stable currency.

The currency has experienced a significant decline against the greenback, reaching its lowest point in over three decades last week. However, it has since strengthened due to speculation about potential interventions by Japanese authorities.

Roche, president and global strategist at Independent Strategy, stated on CNBC's "Squawk Box Asia" on Thursday that the Japanese are not seeking a particularly strong yen. Instead, they are aiming for a relatively stable yen, as they do not want it to plummet any further.

Japan has taken measures to prevent inflation from weakening the Bank of Japan's governor.

Despite the BOJ's monetary policy decision in April and warnings from Japanese authorities, the weakness in the yen continued.

According to reports, Japanese authorities could have spent approximately $60 billion to stabilize the yen following its sudden decline last week. Currently, the yen is trading at approximately 155.61 against the dollar.

The BOJ's latest policy meeting on Thursday showed that the central bank was worried about the impact of a weaker yen on import prices.

At their meeting on April 26, BOJ policy board members stated that the recent depreciation of the yen and rising prices, including crude oil, have begun to impact producer prices by increasing import costs.

The members stated that although the yen's depreciation may lead to a decline in the economy in the short term due to price increases caused by cost-push factors, it could also result in an increase in underlying inflation in the medium to long run.

The greenback has remained strong while the currency has weakened, and the Federal Reserve has delayed rate cut expectations.

Roche stated that Japan would need to tighten its monetary policy by raising interest rates by at least 50 basis points and allowing "unsterilized intervention" of the yen in order to have a policy that results in a strong yen.

In essence, it decreases the amount of domestic currency in circulation. According to the data, the Bank of Japan has not taken any such actions.