Japanese authorities denied any currency manipulation on their part and said the goal of their financial policy is to pull the nation out of years of on-off deflation and kickstart the fragile economy.
Trump occasionally has railed against Japan's trade surplus with the USA, which fell 4.6 percent last year from a year earlier to $60.2 billion, according to preliminary Japanese trade figures.
Speaking in Parliament, Japanese Prime Minister Shinzo Abe said that it was not accurate to say that Japan is devaluing the yen, and that he would explain Japan's monetary policy to Mr Trump if necessary. The euro's exchange rate was the province of the European Central Bank (ECB) and the German government had long upheld the ECB's independence, Dr Merkel told reporters in Stockholm on Tuesday.
Abe is expected to meet with Trump in Washington on February 10. You look at what China is doing.
Shinzo Abe says it is not his fault Japanese won't buy American cars.
"They play the money market, they play the devaluation market, and we sit there like a bunch of dummies", he added.
"Trump's comments could continue to create short-term market volatility, but the BOJ shouldn't respond to each and every remark he makes", said Momma, now executive economist at Mizuho Research Institute who retains close contact with incumbent Japanese policymakers. In 2013, then-Ford Chief Executive Officer Alan Mulally called Japan "the most closed market in the world". One-on-one talks with the US on trade are "not absolutely impossible", Abe told lawmakers last week in Tokyo.
Trump is not the only critic of that trend toward a weaker yen.
The Mainichi newspaper reported earlier that the Japanese government was preparing a package on economic cooperation to present to the Trump administration, including increasing purchases of USA shale gas and investing in high-speed rail projects in California and Texas.
After Trump's comments, the dollar briefly weakened against the yen. On Wednesday the greenback recovered to 113.32 yen by mid-afternoon.
His targets have included the country's auto industry - with top carmaker Toyota singled out - and its currency. But more recently, Chinese regulators have been striving to prevent the currency from weakening too quickly.