USD/JPY a little lower after verbal intervention from Japan – Suzuki, Kanda

Suzuki didn’t have much to say:

• Japan finance minister Suzuki has no comment on the weak yen

But he unleashed his attack-underling ‘Mr. Yen’ Kanda:

• Japan’s Mr Yen Kanda says concerned about one-sided sharp FX moves
• and more: standing by but no comment on when and what when asked about possible steps to be taken including intervention

Interestingly Kanda said he didn’t intervene in the yen last month, Justin broke this yesterday:

• Japan did not spend on FX intervention in the four weeks to 27 October

Hat’s off to Japanese authorities, they managed to hold USD/JPY around 150 for weeks without, if they are to be believed, spending anything on intervention. Its surged after yesterday’s BOJ decision. As I said yesterday:

• The last time the Bank of Japan allowed an expanded range for the 10 year JGB yield tolerance band the Bank explained this was to make ultra-easy policy more sustainable. Today the BOJ set the 1% cap more firmly in place, cementing that reasoning, it looks like loose policy is set in place for still some time to come.

Will Suzuki and his team at the MoF use the same ‘verbal intervention’ playbook again ahead of say, 152, on USD/JPY?

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