Suzuki States Environment In Place For Intervention If Needed, Yen Sees Modest Bounce

USD/JPY sits near 154.75 in recent dealings. Session lows printed at 154.66 a short while ago, as headlines from FinMin Suzuki crossed. We are still comfortably above intra-session lows from last Friday (153.59).

• Most notable in terms of headlines- *SUZUKI: ENVIRONMENT IN PLACE FOR INTERVENTION IF NEEDED - BBG. Also noteworthy was the following: WON'T DENY THAT LAST WEEK'S DISCUSSIONS IN WASHINGTON HAVE LAID GROUNDWORK FOR JAPAN TO TAKE APPROPRIATE FX ACTION - [RTRS].
• Other comments were in line with what we have seen previously, watching FX with a high sense of urgency and no options are ruled out against excessive FX moves.
• In the vol space, overnight vols are climbing, but at 8.45%, remains in the bottom half of recent ranges. 1 week vol, which obviously encompasses this Friday's BoJ meeting is around 9.25%, while the 1 month is 8.58%, off recent highs as well (seen last week on Middle East conflict concerns).
• Risk reversals are relatively steady in the first part of trade.
• BoJ Governor Ueda is also before parliament. His comments appear fairly neutral, stating it is fine to reduce easing if inflation is in line with the outlook, but noting there is no preconception on timing re shifts in monetary policy (BBG). Market expectations for this Friday's meeting are low around any further meaningful policy shifts.