According to ChainCatcher, analysts said Japanese officials are trying to keep speculators on their toes in the event of a possible adjustment to their yen strategies. Japan's Deputy Finance Minister Masato Kanda downplayed reports of whether the government had intervened, saying: "We have not given any answer at all as to whether intervention took place."
The yen's sharp moves after weaker-than-expected U.S. CPI data sparked speculation that Tokyo may have taken advantage of the initial reaction and then stepped in to act. If the move proves to be an intervention, it would mark a new development in Japan's strategy to disrupt and fend off yen shorts. Kanda has repeatedly cast doubt on Japan's actions in an attempt to maximize the impact of its currency policy. While this has not helped change the overall dynamics of the market, it has created a degree of unpredictability, making it impossible for speculators to be sure when the Japanese government will suddenly intervene.