Suzuki (Japan's finance minister):

  • Will not comment on the size of intervention
  • Will not say if this was solo or a "concerted intervention"; latter is difficult to define
  • Have explained Japan's FX concern to other G7 countries since last year
  • Intervention cannot be tied to specific currency level, will watch overall trend
  • FX moves today were rapid, no hints about what level would trigger intervention

Kanda (Japan's top currency diplomat):

  • Never thought about levels in deciding intervention
  • Will not disclose if there were any exchanges with other countries
  • Action can be taken any day, any time, including on holidays

I don't see how after a 26% decline this year, suddenly they see today's moves as being one that is "over the line". It is clear that the 145.00 mark was a trigger point but for their own sake and effectiveness of the intervention, they cannot admit that. But what is also clear is that they are more focused on the pace of the decline in the yen, rather than any specific level perhaps.

I mean after the Fed was more hawkish and BOJ did nothing again, the amplification of policy divergence and traders pushing past 145.00 earlier might have triggered a quick push towards 150.00 potentially.

Instead, USD/JPY stumbled from 145.80 to a low of 140.66 earlier but is now trading back up to 143.33 as the volatility swings continue. The big picture outlook is still intact despite the drop today, with the pair holding above 140.00 for now - providing a base for buyers to keep angling towards 145.00, albeit perhaps with less conviction in the near-term.