The Japanese yen, paired with the US dollar, resumes its decline. The current USDJPY exchange rate stands at 154.54.
After a series of strengthening moves, the yen came under pressure again amid the statements of a leading monetary policymaker Masato Kanda that the government is ready to fight speculative movements of exchange rates. However, Kanda left unanswered the question of interventions last week.
The yen rose by 5.2% from its 34-year lows, with strong growth observed during three sessions but then stopping.
As the Bank of Japan data shows, at least 60 billion USD was spent to protect the yen.
If these were targeted interventions, it is no wonder that the yen resumed its decline once they were over. Fundamental indicators remain negative for the JPY – the difference between the Bank of Japan and the US Federal Reserve approaches is profound.