Japan’s Katayama says US-Japan FX statement ‘alive’, warns on disorderly yen moves

Katayama’s remarks keep the threat of intervention in the background without signalling that action is imminent, and the yen’s weakness on the session suggests markets see little immediate deterrent. Her refusal to judge current levels, and her comment that conditions have improved, read as a holding pattern rather than an escalation in verbal warnings. Pointing to the joint statement with the US is a reminder that Tokyo believes it has room to act if moves become disorderly, which may make traders more cautious about pushing the yen sharply lower in a short period. A weaker currency also adds to import costs at a time when Japanese manufacturers are already reporting firmer input price inflation.