Jane Foley, Senior FX Strategist at Rabobank, suggests that the USD/JPY hit a fresh 17 mth low prompting accusation from Chief Cabinet Secretary Suga that the recent currency moves were one-sided and speculative and the government would take steps as needed. Key Quotes “Although there is probably truth in the perception that speculative pressure is currently a key factor in the JPY’s gains, we remain sceptical about the prospect of intervention from the Japanese authorities. This would go against the grain of years of G7 communiques which make clear that market forces should set FX rates. Insofar as it could be seen as a blatant act of currency war, we would expect the Japanese authorities to draw heavy criticism if it were to intervene in the FX market. Bank of Japan Governor Kuroda this morning has reiterated his mantra that addition policy step would be taken if needed.” For more information, read our latest forex news.