Japan’s Kanda (yen intervention guy) says closely communicating with US re FX moves

Japan’s Finance Ministry’s Vice Finance Minister for International Affairs Kanda. He is the guy who will instruct the BOJ to intervene, when he judges it necessary. Often referred to as Japan’s ‘top currency diplomat’.

Making some verbal intervention remarks:

• Dealing appropriately with FX moves
• Closely
  communicating with us, overseas FX authorities
• Closely watching FX
  moves with high sense of urgency
• Says Japan is
  closely communicating with US authorities over forex on regular basis
• Shared mutual
  understanding that excessive forex move undesirable

These are light comments, nothing in here to suggest actual intervention is close.

USD/JPY is lower on the session here since Yellen referred to the yen earlier:

Yellen’s comments, too, were really not much at all. Sometimes the very fact that these officials say anything at all about intervention is enough to trigger a move. If you put yourself in the shoes of a USD/JPY long who may have established the position at a level close by they may think its best just to get out and await a better entry point. And/or, if you are a dealer with a few stops on the books just underneath your clients may be better serviced by getting out sooner at a better rate than later at a worse one.