Japan's Business Lobby Keidanren Chair says the JPY weakness has gone too far and an adjustment towards JPY appreciation is needed

Japan's Business Lobby Keidanren Chair says the JPY weakness has gone too far and an adjustment towards JPY appreciation is needed.

The comments from Japan's business lobby chair indicate a growing concern over the extent of JPY weakness. This suggests possible pressure on the government or BOJ to intervene or adopt a more supportive stance towards JPY appreciation, which could impact cross-asset sentiment and inflation expectations. Such signals might foster a more risk-off tone in the markets as participants reassess positions based on currency flows.