An interesting comment from the MOF gets Yen traders thinking

A comment from a leading MOF (Ministry of Finance) official, Masato Kanda is worth noting here this morning. A short while ago Kanda refused to comment directly on BOJ USD/JPY intervention, but he did say something potentially interesting in the same sentence. Kanda stated; that Japanese authorities have no specific level in mind for the USD/JPY, but that they will CONTINUE to take appropriate action against rapid, adverse moves in the exchange rate. Now, whilst not citing 160 as the new line in the sand, it seems Kanda might be implying that they have already acted. That is not concrete evidence as such, but the reader is reminded of what was said here earlier this morning. That is the view that they have sold the USD/JPY today, after sucking in the market to assume such action might not be forthcoming, when the Japanese markets were closed. That is a point that was made several days ago here too. Meanwhile, the USD/JPY seems to still be meeting resistance at 156 after several more recent attempts to rise back above that level. The USD/JPY is currently trading at 155.75. It is important to note; that the MOF and not the BOJ call the shots when it comes to deciding on whether or not to intervene in the FX markets