New Japanese Prime Minister Hatoyama says that unemployment in Japan is going to get worse and that more steps are needed to correct it. Hatoyama’s party swept to power on a very progressive program of social spending, so this should not come as a surprise to the market.

USD/JPY trades at the 89.40 level, working through offers up to 89.60 from exporters and options-players. stops lie around 89.60.