This article published today givens further indications that Japan is resolute in defending the Yen against further appreciation relative to the US Dollar.
Nakamichi, Takashi, 2010. Noda says japan may act again on yen. The Wall Street Journal, Sept. 18.
It is not clear to me if these statements are just talk designed to appease political opposition or if it is meaningful and further action is immanent. Given that one intervention has taken place, to a bit of a surprise, I think it is possible that another will happen.
The global economy does not need a currency war at this time of weak recovery from a deep recession.
I feel that the pegging policy of China has initiated this pending currency war. In my opinion, this is as destructive to the global economy as massive tariffs.
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