AUTOREFRESH 
Japan getting ready to increase it’s intervention war-chest
By Sean Lee || March 4, 2010 at 03:18 GMT
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Just reading a report over Reuters newswires that the Japanese government have made an increased allowance in its 2010/2011 draft budget for foreign exchange intervention. This strikes me as unusual given that the new government were supposed to be much less interventionist. The new total war chest would then be 145 trillion yen which is a lot of intervention power. The report says that the government hasn’t intervened in the FX market in 6 years but that can only mean ‘through official channels’ as they have lots of other institutions such as Kampo which they use.
Mark Mobius was on Bloomberg about a month ago and said that when they figure out they need to intervene it would be big
Good night all covered my shorts and going to bed Thanks Sean
I think the verbal intervention would start in the 87s and then the real stuff would start in the 85s.
What’s the long term implication – Yen strength presumably?
I think the verbal intervention started with the article
Yen strength makes there products more expensive and less competitive. Yen weakness will help with their deflation problem, also
[...] this morning and has been stuck in its tracks ever since. The Japanese authorities appear to have taken the downside out of play near-term but we may see a week or two of overhead supply to contend with as year-end flows are [...]