Market Analysis: Yen's Depreciation Accelerates Observers can't help but wonder where the Japanese authorities are

Sina Financial News The yen has fallen sharply, and for Japan, it has fallen far below the so-called red line level, and the speed of the yen's falling has traders wondering when the authorities may start buying to support the yen, and why they have not yet done so. Japan's Central Bank accelerated fall momentum against the dollar Exchange Rate fall to a 34-year low against the dollar after it signaled on Friday that it would maintain accommodative financial conditions. In early Sydney trading on Monday, the Japanese yen gave up its previous pump against the dollar and was largely flat at 158.32 yen per dollar due to a reduction in Liquidity due to a public holiday in Japan. Policymakers have warned on long occasions that they will not sit idly by if the depreciation is too large and too fast, and after Japan's Central Bank meeting, Finance Minister Shunichi Suzuki reiterated that the government would respond appropriately to Exchange Rate Fluctuation. Earlier this month, he also voiced concerns to U.S. Treasury Secretary Janet Yellen about the yen's depreciation, which market participants believe set the stage for intervention. Jane Foley, head of forex strategy at Rabobank, wrote in a note to clients that for forex intervention to successfully reverse the USD/JPY trend, in addition to improving Japanese economic data, it is likely that the US economic rise will slow down and price pressures will fall. One reason Japan may seem reluctant to act may be that intervention alone cannot change the huge Intrerest Rate gap, which is partly responsible for the yen's depreciation. Although the Central Bank of Japan has ended negative Intrerest Rates, Japan's Intrerest Rates are far from reaching levels that will entice investors to abandon higher yields in the United States and other countries.