“Yen Weakens as Japan’s Verbal Warnings Appear to Be Losing Effectiveness”

A snippet from the Wall Street Journal on the lower yen in Tokyo trade so far today./ In brief:

• yen weakens
• Japanese authorities’ verbal warnings appear to be losing effectiveness

Citing CBA analysts:

• Market reaction to Japanese Finance Minister Kato’s comments on Tuesday was much smaller compared with Friday
• “If words cease to have the desired impact, it may take action from the Ministry of Finance to get the desired impact on the JPY,”
• risk of market intervention by Japanese authorities to support the yen at any time

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Other analysts are not warning o yen intervention at any time, eyeing 160 as the trigger level:

• ICYMI – Citi base case is for no USD/JPY intervention before 160
• USD/JPY 160 level – potential BOJ intervention, rate hike

This article was written by Eamonn Sheridan at www.forexlive.com.