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Japan's finance ministry and central bank say they're closely watching the yen, amid concerns it could prolong Japan's deflation and slam its export-driven economy. But an analyst from JP Morgan says the government will likely hold off from intervening, because of current forex losses and a mixed history of success when it last bought dollars in 2004.
Junta Tanase, Chief Foreign Exchange Strategist said "From an international perspective, it doesn't have the clearance to intervene and that's the biggest reason. Another reason is the foreign reserve losses this year are very large and that will make it tough politically to intervene."