Japan's finance minister was once again across the news wires with warnings on intervention.
They sound rather hollow. The issue does not appear to be a weak yen, but a strong USD. EUR/JPY, GBP/JPY are not scaling lofty heights, suggesting the USD/JPY gains are USD driven.
There are easily explainable factors for the stronger USD:
- US yields are ratcheitng higher and higher
- the US economy is resilient
Its difficult to make the case that USD/JPY is much higher than fundamentals support.
Check out EUR/JPY, and GBP/JPY - they are flat lines compared with USD/JPY.
