The US Dollar was trading near to a 17-month trough versus the Japanese Yen after Shinzo Abe, Japan's Prime Minister, hinted that the Bank of Japan's intervention in the Yen's rise might not be as evident as it appears. According to Abe in a recent media interview, countries, including Japan, should avoid “arbitrary intervention” solely to weaken the currency. That suggested to markets that the BOJ might not be too keen to act swiftly against a rising Yen.

As reported at 10:59 am (BST) in London, the USD/JPY pair was trading flat, at the pair's opening price of 110.3275 Yen; the pair has ranged from a trough of 110.2300 Yen to a peak of 110.6400 Yen in today's trading session. The EUR/JPY is lower at 125.2595 Yen, down 0.24%.

Markets Still Wary of BOJ Movements

Analysts remain wary of Abe's comments, noting that the BOJ has intervened in the past whenever the pair hit between 100 Yen and 105 Yen, which they see as the pair's ultimate downside risk. For the time being, then, they'll expect just more rhetoric, at least until the pair begins to approach the BOJ's apparent “limit.” Analysts also point out that the upcoming G7 meetings could put the BOJ's back to the wall in terms of an intervention. Since January 1, 2016, the Yen has gained nearly 8% on the greenback, and about half that versus the Euro.