• Told Kishida that FX moves should reflect economic fundamentals
  • Kishida made no specific request on monetary policy
  • Does not think that monetary adjustment would have a direct impact on currency

He adds that the recent yen weakness can also be attributed to dollar buying for  commodities  and also due to rate differentials. Well, in part yes but the technicals also matter to some extent I would argue although that is one reason that policymakers can never cite. The break of 120.00 allowed for much room to roam and as we hit 125.00 on Monday, we are now seeing a pullback. Call it a technical pause or perhaps it is due to Japanese fiscal year-end repatriation flows but they both fit the narrative.