Beyond the size of the euro holdings in its foreign reserves, as it could end up selling dollars which would lift the yen and hurt its economy.

“If Japan says it will sell the dollar to buy the euro, it would boost the yen rather than supporting the euro. That would be tough under the current economic situation.”

Watanabe also feels China must accelerate the pace of rate hikes and yuan revaluation to reign in inflation and prevent overheating of its economy

Feels yen likely to weaken vs dollar gradually