USD/JPY faces verbal pressure as Katayama calls undervalued yen problematic
The yen is the main focus after Japan's Katayama said an undervalued yen is problematic and agreed with US Treasury Secretary Bessent on cooperation. The source reports no price move, pip figure or technical levels. Katayama's comments came with a promise of close contact with the US Treasury, which adds to verbal pressure on USD/JPY. The remarks follow August's joint intervention, so markets are likely to read them as a signal that Tokyo and Washington remain aligned on currency matters. Explicitly describing the yen as undervalued, together with visible US-Japan coordination, strengthens the verbal defense of the currency. For traders, this raises the risk of sharp yen-positive moves in USD/JPY. It argues for caution with long USD/JPY exposure, since officials have already shown a willingness to back words with coordinated action.
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