USD/JPY backs off from close look at 158 as MOF expresses concern

Much earlier today the USD/JPY was on the move higher again. The dollar came close to the 158 handle for the first time since the middle of July. The USD/JPY had closed in the US last night at 157.44. The high seen earlier this morning was set at 157.93, but then it backed away to below 157 following comments from a top Japanese MOF official, Atsushi Mimura. He is the guy in charge of FX and currency affairs and since coming into office he has been a strong voice against further Yen weakening and he offered another verbal volley earlier today, sending the USD/JPY back down to 156.84 before it attempted to push higher again. Mimura said he is gravely concerned about speculative FX moves against the Yen. Well, if that is the case, perhaps he should tell his colleagues at the BOJ to stop holding interest rates down. Anyway, jaw-boning aside we will have to see, if the BOJ is willing to step in and halt the dollar near 160 again. It is currently trading at 157.03