Masafumi Yamamoto and Masayoshi Mihara, strategists from Mizuho Securities, reported that if the Bank of Japan Governor Ueda maintains a dovish stance in today's speech, ignoring the recent depreciation of the yen, investors may be more confident in selling the yen. If Ueda only focuses on the yen's impact on annual inflation rates, the view that the Bank of Japan's monetary policy stance is unaffected by exchange rates may be further reinforced. The recent tone of verbal intervention by the Japanese Ministry of Finance indicates that there is no urgent need for actual intervention.
Note: Ueda is expected to speak at the Japan Business Federation this afternoon.
