Japan's Katayama: We are getting closer to taking decisive step in FX market

Japan’s finance minister Shunichi Katayama signalled a firmer stance on FX, saying authorities are “getting closer to taking a decisive step,” and stronger verbal intervention has already pushed the yen higher. Officials view the 160.00 level on USD/JPY as a clear line in the sand, raising the odds of more active support for the yen. Markets should price an increased risk of yen-strengthening intervention, which would likely put downward pressure on USD/JPY, dent dollar/JPY momentum and affect carry trades, though past interventions have had limited lasting impact amid adverse macro trends.