Japan’s yen intervention guy says will respond if FX moves become excessive – verbal.

Japan’s Finance Ministry’s Vice Finance Minister for International Affairs Kanda. He is the guy (its normally a guy, yeah) who will instruct the BOJ to intervene, when he judges it necessary. Often referred to as Japan’s ‘top currency diplomat’.

  • Will respond to FX moves if moves become excessive
  • FX should move stably reflecting fundamentals
  • Will not rule out any options (KAnda was asked about intervention)
  • we are focusing on FX moves rather than levels

On that last comments, it’s the pace of moves that seems to concern Japanese authorities – i.e. how quickly yen depreciates. A sharp rapid move will bring about a response from authorities which, so far, have been only verbal internvaiuont not actual yen buying intervention.

As for actual yen buying intervention, it’ll be preceded by more pointed comments. I have a guide here:

More from Kanda:

  • recent FX moves are rapid

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