The US dollar against the Japanese yen fell in response yesterday, briefly reaching a low of 156.87, with a current decline of about 0.29%. What is behind this? Japanese Finance Minister Katsuyuki Kitamura has been outspoken about it.

She made it very clear: as long as the exchange rate deviates too far from the economic fundamentals, the Japanese government has ample "operational space" to implement foreign exchange intervention. This statement carries significant weight—after all, it is the strongest warning she has issued to speculators following the continued depreciation of the yen.

Katayama's point hits the nail on the head. That sharp depreciation of the yen last Friday? It was not a result of fundamental changes, but rather market speculation. She emphasized: "Regarding this situation, we have made it clear long ago that we will take decisive action, which is clearly stated in the joint statement of the finance ministers of Japan and the United States."

There is a detail worth noting here. Katayama specifically mentioned the joint statement signed by the finance ministers of Japan and the United States in September this year. The implication is very clear—if Japan really wants to intervene in the foreign exchange market, the U.S. side has already given a verbal agreement, and there is no need for repeated communication. Although that statement superficially emphasizes that the market determines exchange rates, it also acknowledges that intervention is a completely reasonable option in cases of "excessive volatility."

Katayama concluded: "This means we have ample freedom." Forex speculators, pay attention.