Increased focus on ‘currency wars’ might deter BOJ
Finance ministers from the G7 nations will hold an informal meeting this week and the Japanese FinMin Noda has already stated that FX may well be on the agenda.
The so-called “currency wars” have been getting an increasing amount of air time in recent days and this will make it much more difficult for the BOJ to justify any more unilateral intervention to its other major counterparts.
The fact that they didn’t enter the market yesterday when they had the chance after the monetary easing tells me that they are nervous about upsetting the US in particular. The market will surely test the BOJ resolve at 82.85 before the day is out.