Japan's Amari triggers Yen selling hysteria

FXstreet.com (Barcelona) - As a reminder, the main catalyst causing the eye-popping rebound on all JPY crosses, came from Japan's economic minister Amari, in the last 24h retracting himself from what he calls misinterpreted comments when he was quoted by media reports on Jan 15 as saying that "yen that's too weak would inflate import prices and affect people's lives."

Ever since the headline came out, as traders got worried on the change of tone, a strong Yen appreciation from USD 89.60 to USD 87.80 took place. The impulsive correction caught many longs off guard, while the thought of an end to the Yen cross rally surely crossed the minds on many others, a story we have seen repeating itself over and over in the past.

However, it has taken only 48h for Mr. Amari to restore normalcy on the Yen bear market, after rephrasing his current view on the currency as "still in the process of correcting from its sharp appreciation", Akira Amari told The Wall Street Journal on Jan17. "That was the case back then, and is the case now" he added, possibly concerned that the story of a falling Yen may have had its days numbered. Mr. Amari said words were out of context. "Some media distorted part of my comments. It is truly regrettable."