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Yen Gains On Kanda Headlines On Speculative FX Moves

JPY

USD/JPY is lower amid headlines crossing from Japan's top currency diplomat Kanda. The pair is back to 151.10/15, around 0.20% stronger in yen terms. We are still above Friday lows near 151.00 at this stage.

  • Headlines include: "RECENT FX MOVES AREN'T REFLECTING FUNDAMENTALS", "CLEARLY SEEING SPECULATIVE MOVES IN FOREX", CANNOT ACCEPT SPECULATIVE ACTION", "WE ARE PREPARED TO TAKE ACTION" - BBG
  • These are a step up in language used recently around FX and may indicate increased sensitivity around USD/JPY being close to recent highs (near 151.91).
  • Still, Kanda stated the authorities don't consider FX levels, but the direction of the move. No measures would be ruled as well if moves are seen as excessive.

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