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.

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

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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.

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