TOKYO, July 2 Reuters Japan39;s finance minister said on Tuesday authorities were vigilant to sharp currency market moves, as the yen continued its slump to fresh 38year lows against the dollar, but stopped short of giving a clear intervention warning.

The change in official daily commentary to reporters, in which an intervention warning has become almost customary, comes as analysts question the effectiveness of such jawboning in stopping sharp yen declines.

Foreign exchange levels are set by the market reflecting a complex mix of various factors, including inflation, current account balance, market sentiment and speculative moves, finance minister Shunichi Suzuki said in a regular postcabinet meeting news conference.

We39;ll continue to closely watch the market, he said.

Although Suzuki did say there has been no change in the government39;s stance, the absence of usual comments on the readiness to intervene marked a break in what had become almost routine for officials.

Yujiro Goto, managing director chief FX strategist at Nomura, said the official comments on Tuesday pointed to a slight change in tone.

Repeating the same wording could inevitably weaken the impact of warnings, he said. No change in the wording could also be interpreted by investors that there would be no immediate action yet, he added.

But I don39;t think this absence of intervention warnings suggests that interventions are less likely now than before, he said.

The yen sank to 161.72 per…