Japan's intervention may lead to further anger the U.S. Government

Despite the scale of the implementation of Japan last month, up to 2 trillion yen foreign exchange market intervention to curb yen gains, but Japan has been on hold since then, despite the yen rose further against the dollar near record highs.

Although the Japanese government did not give a clear answer, but Tokyo has to remain silent seems to be out of the U.S. government may be back for consideration.

Since mid-September to Japan's implementation of the six and a half after the first intervention, including the U.S. Treasury secretary (Timothy Geithner), including the basic U.S. officials remain silent.

Japan thus believe that although the United States of Japan's intervention did not show a high degree of enthusiasm, but quietly accepted the fact that the Japanese government had to take action to prevent the export-dependent economy off its growth path.

But U.S. officials of Japan currency intervention is clearly not satisfied with the timing, because at a time when the U.S. tried to convince China to allow market forces to determine the trend of the RMB.

U.S. government officials are still unable to determine Japan's intervention is to alert the market to take a one-time or periodic intervention in the beginning of the initiative. If the latter, the United States will lead to dissatisfaction.

Thus the Japanese government in trouble and may find more difficult to re-intervention. Although further intervention may temporarily depress the yen, but there may cause diplomatic friction with the United States, and Japan-US diplomatic tensions may be debilitating to some extent the effect of government market intervention.

Some analysts expected that if the yen rose against the dollar, breaking the psychological barrier of 80 yen, Japan will intervene to slow the yen's gains, but this may annoy the United States.

Analysts said the U.S. government of any public complaints may highlight the lack of policy between the U.S. and Japanese collaboration. Credit Suisse (Credit Suisse), chief currency strategist in Japan, said Koji Fukaya, speculators may find that selling the dollar against the yen will become easier.

Said a person familiar with the Japanese government intervention in September in Japan Prime Minister Naoto Kan (Naoto Kan) for re-election the ruling Democratic Party of Japan conducted the first day, did not seem to obtain U.S. approval, the basic response to domestic public opinion.

The success of the intervention, the dollar rose against the yen the day nearly 3 yen to 85.78 yen, the dollar subsequently fell to well below the level before the intervention.

According to the informed sources told Dow Jones Newswires (Dow Jones Newswires) revealed that the Kan-initiated intervention to demonstrate its leadership to the voters. The source said the party elections in Japan before the start of the Democratic Party, Naoto Kan, the economic team has been busy with election matters, because nothing in terms of curbing the yen rally has been criticized.