USD/JPY drops slightly after intervention talk from Japan’s chief of FX, Masato Kanda. Recent weakness in the Yen should be attributed to speculation not fundamentals, Kanda said. The authorities may intervene to correct the situation, propping up the Yen. It has lost ground after intervention talk from Japan’s currency chief, Masato Kanda heightens speculation the Japanese authorities are about to use market operations to prop up their currency.
950 against the US Dollar. Data from the currency futures market seems to support Kanda’s view. During the week of the BoJ’s March meeting, speculators, such as hedge funds, actually increased their bearish bets on the Yen, according to data from the Commodity Futures Trading Commision , despite widespread rumors the BoJ was going to hikerates.