The specter of Japanese intervention looms over USD/JPY below the 152.00 threshold, putting the rally on hold.

The USD/JPY duo has been stuck in the 151.40s range for the past few days. Market participants are worried that Japan will intervene if the yen depreciation worsens, so trading is stuck in that range. Japanese Finance Minister Shunichi Suzuki's statement today (26/March) confirmed these concerns.

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Shunichi Suzuki said he would not rule out any measures to control the yen's weakness. The statement echoed the comments of Japan's top currency diplomat yesterday.

Suzuki revealed that the weakening yen has positive and negative economic impacts, but excessive volatility will increase uncertainty in the business world. In turn, this could hurt the economy.

"Rapid currency movements are undesirable," Suzuki told reporters after today's cabinet meeting, "The currency needs to move steadily, reflecting economic fundamentals."

Suzuki emphasized that Tokyo is focused on the velocity of market movements, not on specific currency rates. He declined to comment on the possibility of Japanese intervention to stem the yen's weakening, saying the speed of currency fluctuations would determine the decision.

"If I answer questions about currency intervention, it could have an undesirable impact on the market," Suzuki said, "If there is excessive movement, we will respond appropriately without ruling out any policy (possibilities)."

Japanese authorities last intervened in the currency market in September and October 2022 to stem the yen's severe weakness. The intervention in September 2022 occurred when USD/JPY soared more than ¥2 in a day to around the 145 level. The next intervention occurred right after the USD/JPY touched a 32-year high near the 152 level. The historical record underlies the market's hesitation to break through the 152.00 threshold.