The yen has typically served as “a safe haven” during bouts of market volatility. But it has been battered this year by 

The worst is not over for the Japanese yen yet, as big names in finance such including HSBC, Goldman and Monex Group forecasts on key 140 level break and further, if without the intervention from the Japanese authorities.

The Bank of Japan has kept short-term rates negative for more than six years. The central bank has also imposed a cap of 0.25% on the yield of the 10-year Japanese government bond by promising to buy unlimited quantities of such bonds. That has made it an outlier among major central banks, which have moved quickly to tighten monetary policy this year.

Earlier this month, Japan Chief Cabinet Secretary Hirokazu Matsuno expressed his concern on the yen’s fall: "We are concerned about recent rapid, one-sided moves If such moves continue, we will take necessary action". Meanwhile, Japan's Finance Minister Shunichi Suzuki told in a press briefing "Recent moves are rather rapid and one-sided. We need to be watching developments with strong interest"

“We have to take necessary steps while closely monitoring developments including excessive, one-sided moves in the exchange rate,” Deputy Chief Cabinet Secretary Seiji Kihara said on September 11. "I won't comment on monetary and interest-rate policy, as they fall under the jurisdiction of the BOJ," he added.

He also stated that "A weak yen is most effective in attracting inbound tourism" and that the Government of Japan will further relax its tourism rules for incoming overseas travelers at an “appropriate time”, for example, by omitting the the ceiling for daily entrants to the country.

 

Japan eased border controls from Sept. 7 by raising the ceiling for daily entrants to 50,000 and freeing entry for travellers on package tours without the need for guides. Analysts say scrapping the ceiling and allowing more travellers would be crucial to attract foreign money and revive the fragile economy.

 

Reference:

https://www.bloomberg.com/news/articles/2022-09-10/japan-closely-watching-undue-one-sided-yen-moves-official?utm_source=google&utm_medium=bd&cmpId=google&leadSource=uverify%20wall

https://www.reuters.com/markets/currencies/japan-must-take-steps-vs-excessive-one-sided-yen-moves-govt-spokesperson-2022-09-10/

https://www.cnbc.com/2022/09/08/weak-yen-most-textbook-driven-currency-move-in-30-years-monex-group.html

https://www.reuters.com/world/asia-pacific/japan-finmin-suzuki-says-recent-yen-moves-somewhat-rapid-one-sided-jiji-2022-09-07/