Hirohisa Fujii, has said that he would not rule out taking action in the FX market if currency moves are abnormal. Fujii also re-iterated his view that global competition to devalue each country’s currency would be wrong but that he never said he would leave a strong Yen as it is. It suggests that the DPJ’s policy towards the Yen is closer to the LDP’s than the market thought.
It has led to a bid tone in USDJPY this afternoon and in turn has seen EURJPY demand out of Tokyo provide a base for EURUSD.
