USD/JPY touched an eight-month high near 154.50 before easing lower, as Finance Minister Katayama warned on rapid yen moves, though the BOJ’s dovish stance limits meaningful support, BBH FX analysts report.

Japan finance minister flags rapid Yen moves

"USD/JPY hit an 8-month high near 154.50 before drifting lower towards 153.30 after Japan Finance Minister Satsuki Katayama warned against excessive yen moves. Katayama said 'I’m seeing one-sided and rapid moves in the currency market…There’s no change in our stance of assessing developments with a high sense of urgency'."

"Katayama’s warning on yen volatility rings hollow. A more hawkish Bank of Japan (BOJ) last week would’ve done more to support JPY. Instead, the BOJ’s laid-back policy stance means any intervention will only slow, not stop the yen’s slide. The BOJ would be throwing good money after bad."