Tatsuo Yamazaki, a former top foreign-exchange official at Japan’s Ministry of
Finance, said in a Monday interview the yen should appreciate by as much as 20%
to roughly ¥130 per $1 and that a 10% undervaluation estimate may be
conservative. He said the issue is how market expectations shift rather than
fundamentals and warned authorities have moved beyond warnings and are prepared
to intervene, creating a risk of forced covering for yen short positions.
