By Tetsushi Kajimoto and Leika Kihara

TOKYO (Reuters) -Japan’s high monetary diplomat Masato Kanda mentioned on Tuesday authorities have been in shut contact with U.S. Treasury Secretary Janet Yellen and different abroad officers “nearly day-after-day” on currencies and broader monetary markets.

The remarks seemingly sign Tokyo’s want to maintain market gamers on guard about the potential of foreign money intervention to prop up the , which has been hovering close to the 145-per-dollar stage, seen as authorities’ line-in-the-sand on the foreign money.

“We’re exchanging views with and speaking with authorities in different international locations together with our ally the USA not solely on currencies, monetary markets however numerous different points,” Kanda instructed reporters.

Finance Minister Shunichi Suzuki confirmed Tokyo and Washington have been in shut contact with one another on foreign money strikes, however declined to disclose what was being mentioned.

“I’ve nothing extra to say past what I’ve mentioned beforehand,” Suzuki instructed a information convention on Tuesday, when requested in regards to the velocity of the yen’s current declines.

Notably, Suzuki stopped wanting escalating his verbal warnings by avoiding feedback comparable to “deeply involved about weak yen” or able to take “decisive step” within the foreign money market – phrases he used beforehand simply earlier than final yr’s intervention.

On Friday, Suzuki warned towards “sharp and one-sided strikes” within the foreign money market.

He additionally mentioned Japan will take acceptable steps ought to the yen weaken excessively, after the foreign money fell previous the 145 to the greenback threshold – a stage round which Japan carried out its first yen-buying intervention in 24 years final September. Past that stage, some market gamers see 150 yen as a brand new threshold.

“It seems like authorities are much less cautious in regards to the weak yen in contrast with final yr after they stepped into the market,” mentioned Masafumi Yamamoto, chief FX strategist at Mizuho Securities.

“150 yen could possibly be a set off,” Yamamoto mentioned, including that components such because the weak yen’s increase to exporters’ earnings and the inventory market counsel intervention will not be imminent.

Japanese authorities say they have a look at the velocity of yen falls, moderately than ranges, and whether or not the strikes are pushed by speculators, in deciding whether or not to step in.

Additionally they think about it necessary to hunt the assist of Group of Seven companions, notably the USA if the motion includes the greenback, for coordinated intervention which often has an extended lasting affect than unilateral motion.

Japan purchased yen in September, its first foray out there to spice up its foreign money since 1998, after a Financial institution of Japan (BOJ) resolution to keep up ultra-loose coverage drove the yen as little as 145 per greenback. The U.S. Treasury mentioned after final yr’s intervention that such actions needs to be uncommon.

The US final month eliminated Japan from its foreign money monitoring listing in its twice-yearly foreign money report. Some market gamers say the transfer might make it simpler for Tokyo to intervene out there.