This week will end the second consecutive year in which Japan’s Ministry of Finance has abstained from intervening in forex markets. This is noteworthy, perhaps, in light of the fact that the Yen is poised to begin appreciating, on the heels of Japanese rate hikes. Most analysts do not expect the Bank of Japan to intervene if the Yen does begin to rise, because Japan’s economy appears to be in good shape. Several years ago, when the Bank of Japan spent over $300 Billion to prevent the Yen from rising, Japan’s economy was still fragile and forex intervention could be more easily justified. The Standard reports:

Japanese officials say there is no change in their standard refrain that currencies should stay in line with economic fundamentals, and movements should not become too volatile.