Finance Minister Katayama signals readiness for currency action while BOJ acknowledges rising long-term rates and Middle East impact on prices.
Japan’s Finance Minister Mira Katayama stated the government is prepared to take decisive action on foreign exchange markets amid yen volatility. The warning follows a dip in USDJPY, though the pair remains above key support levels near 158.64.
Bank of Japan Governor Kazuo Ueda noted that recent GDP data aligned with forecasts but highlighted rising long-term interest rates and potential upward price pressures from geopolitical tensions. He emphasized the need to assess market functionality before adjusting monetary policy.
USDJPY briefly retreated on the comments but faces resistance at the 100-hour moving average (158.53) and yesterday’s low (158.60). A break below could shift short-term bias toward sellers, with further targets at 158.00 and the 200-hour moving average (157.84).