• current Yen moves are stable
  • no need now for action to stem Yen rise
  • Tokyo may step in if Yen moves are rapid
  • Yen will weaken before long, Yen will not rise much above 85.00

Edit: Consider this – the more the market gets rebuffed at the lower levels, the stronger the technical reversal picture; Central Banks are not stupid, they also know if they are canny, which I believe the BOJ/Govt are, that if they also dawdle with words more naive sellers come out the woodwork and sell at the wrong level; the more of these there are the more the BOJ get the momentum of reversal and the cheaper the exercise for them – letting a panicking market buy back. They know they need this back on an 88.00 handle to get anywhere near the market taking on board that they could be serious; the market will do the rest.

There are some long term longs (real money) out there and the BoJ don’t want to let it run to a level where they start to bail out under 84.50 (eg) and cause the landslide so if they going to act it is more likely before !!