The Japanese yen has experienced significant volatility, prompting Japan's top foreign exchange (FX) officials to closely monitor the market and warn against speculative moves. Finance Minister Katsunobu Kato highlighted the pros and cons of a weak yen, emphasizing the need to monitor its impact on corporate activities and households. The Bank of Japan (BOJ) raised its economic assessments for two of Japan's nine regions, citing moderate economic recovery and increased output due to global IT demand and high auto-related production. Additionally, the BOJ noted broadening price hikes and wage increases amid labor shortages. Meanwhile, Japan's real wages declined in August for the first time in three months, which Economy Minister Akazawa described as concerning. USD/JPY surges on US rates rethink, with Fed, bond auctions, and inflation report expected to drive direction.