Japan chief cabinet secretary Hayashi says stable FX levels are desirable

Earlier in the session we had Kanda:

• Japan’s Kanda says ready to take action if excessive FX move seen

Hayashi now:

• Addition of Japan to the US currency monitoring list does not mean
  that Japan’s foreign exchange policy is a problem
• Stable forex levels
  are desirable
• Important that forex
  rates reflect fundamentals
• Will continue to
  closely monitor moves in forex market

Despite all this USD/JPY is higher, above 159.10 as I update.

Also from Japan were the data for inflation, which is sitting around levels that the Bank of Japan could accept as an argument to hike rates again. They have told us time and again that they’d like to see demand driven inflation, but with wages rising they’ll argue this is likely on the way.

And, repeating, despite all this USD/JPY in higher, just dipping back under 159.10 as I update:

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