Japan's top currency diplomat, Mimura, reiterated that authorities remain concerned about yen weakness and are watching how US-Japan interest rate differentials affect the currency. He dismissed concerns that funding constraints could limit yen-buying intervention and pointed to close coordination with the US on currency policy. USD/JPY is testing support near 156.50 as the rhetoric keeps intervention risk on the table.
Japan's top currency official, Mimura, said authorities are neither satisfied nor reassured by the yen's recent moves, keeping the risk of intervention alive if weakness turns disorderly.
Mimura said Japan's finance minister and the US have sent a clear message on the yen, underscoring close coordination between the two countries. He also pushed back on the idea that funding constraints could limit Japan's capacity for yen-buying intervention, saying he has "absolutely no such concern."
The comments show Japanese authorities are still tracking how Japan-US interest rate differentials are affecting the yen. Mimura said Japan is always carefully watching how rate trends in the two countries move the pair. He also described the broader US-Japan relationship as a strong currency alliance extending beyond foreign exchange into wider economic-policy cooperation and global supply chains, even as he made clear Japan is not reassured by the yen's underlying moves.
USD/JPY is currently testing a support zone around 156.50, with yield differentials favoring the dollar continuing to support the pair alongside ongoing geopolitical tensions. Dip-buyers could step in near that support, aiming for a rally toward 160.50 resistance, while a break lower would open the way toward 155.00 support.
Source: Investinglive
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