Mitsubishi UFJ Morgan Stanley Securities strategist Shota Ryu said the yen's
weakness is mainly driven by Japan-specific fundamentals — notably a widening
digital services trade deficit and rising overseas investment by households and
corporates. He said speculators have built large short positions in futures,
indicating the move may be overheated and bolstering the case for government
intervention to support the yen. Japan's finance minister Katayama said on
Tuesday the government stands ready to take "decisive" action in the FX market
if necessary.