Japan top currency diplomat Kanda: Recent yen moves are not reflecting fundamentals

• Speculative moves are behind recent yen movement
• Does not consider a 4% move in a span of 2 weeks as being a “mild” move
• Closely watching FX moves with a high sense of urgency
• Will not rule out any steps to respond to “disorderly” FX moves

It was evident that the barrage of verbal jawboning throughout the week wasn’t working. So, this was the next step by Japanese authorities. Kanda’s remarks are just a tad stronger compared to all the other warnings today. But that is only the case because it is reinforced by a meeting between the three parties noted above.

Otherwise, his remarks aren’t anything new in terms of what we’ve already heard. But that is what we already expected. If anything, it is just an added emphasis that they could look to intervene if things continue in the sessions ahead.