Japan press: US and Japan at odds over linking currency to trade

The Nikkei reports on the tensions between the US and Japan on the USD/JPY exchange rate.

The article echoes Aso earlier saying talks on currency will be ongoing (links here and here):

• U.S. and Japanese finance chiefs failed to reach agreement Thursday on whether exchange-rate policies should be negotiated as part of broader bilateral trade talks.
• Finance Minister Taro Aso told Treasury Secretary Steven Mnuchin that monetary policy and trade should be discussed separately, but Mnuchin apparently rejected this proposal.

Article goes on:

• Washington has been pushing for language barring competitive currency devaluations in its trade agreement with Japan.

And, apropos the comments from earlier:

• BOJ senior official says its monetary policy aimed at inflation, not at a lower yen

Nikkei report says:

• "We strongly oppose any conditions that would tie our hands on monetary policy and harm our national interest," a Japanese government source said.

Yen gonna get real interesting if we get belligerence from the US while the 10 day Japanese market holiday in underway (it begins tomorrow):

• Japan's Financial Services Agency is warning of possible increased volatility in financial markets.

Abe and Aso.