SMBC Nikko Securities: The Japan-US finance ministers' meeting may not increase the likelihood of coordinated intervention; the market still sees it as laying the groundwork for unilateral action.

(1) SMBC Nikko Securities strategist Makoto Noji stated that the online meeting between Japan's Finance Minister Shunichi Katayama and US Treasury Secretary Janet Yellen overnight does not necessarily increase the likelihood of coordinated intervention between the two countries to support the yen exchange rate. (2) Noji pointed out that, due to the market consensus that "the United States will not take action solely against the appreciation of the dollar," even if the Japanese and US finance ministers hold a meeting, it will only be interpreted as Japanese authorities seeking understanding for unilateral intervention. (3) On Tuesday, Shunichi Katayama said that both sides share similar economic views and confirmed a firm agreement to "take decisive action if necessary."