Analysis-Japan’s re-defined intervention trigger may slow, but not derail, yen bears

Japan's new interpretation of "excessive" yen volatility is aimed at keeping investors on guard rather than lowering the threshold for actual intervention, say experts, who expect yen bears to remain resilient until domestic monetary conditions tighten. But top currency diplomat Masato Kanda said on Wednesday that steady yen falls over a protracted period could also warrant stepping into the market, suggesting that Tokyo was giving itself wider scope to intervene to prop up the currency. The remarks came in the wake of choppy trading on Tuesday, when the yen jumped abruptly after breaching the psychologically important 150 per dollar mark – a move some traders suspected was caused by Tokyo's yen-buying intervention.