There is chatter now of good selling starting to appear in the USD/JPY orderbook; option-related sellers now at 85.90 and 86.00.
Another item of increasing chatter is the concern now that with the Japanese government about to embark on increased spending, and also being seen to interfere with BOJ independence, there may be some increased willingness to sell JGBs, and a desire for higher yields in order to buy new issues; there is speculation of a potential downgrade, or warning to that effect, of Japanese debt. Note that this could serve to increase selling of the Yen.
