Forces driving the dollar are still the same, concerns about the current account deficit. A rise in sterling, triggered by strong UK data, is also contributing to dollar weakness,
Japanese officials make statements like that when we see very rapid movements in the foreign exchange markets because they are concerned such moves can build into stronger trends.
The market will be watching the consumer prices report, as the minutes have made it clear the Fed is watching inflation. The economic data has been strong and supportive for the dollar.
It's a very strong signal and positive for the euro,