Suzuki attempted to intervene verbally. There isn’t much here to scare traders:
- There is no ‘defence line’ when dealing with FX moves.
- He won’t rule out any steps to respond to disorderly FX moves.
- He is closely watching FX moves with a high sense of urgency.
By ‘defence line’, he means a level for USD/JPY that will trigger intervention.
Suzuki cannot nominate a firm level. If he does, traders will quickly test his resolve by taking the rate there. If he intervenes, the dip will be bought for another try. If he doesn’t intervene, his threats will be empty.
A one-way street: