As JR rightly points out, the increased war-chest for intervention that the Japanese government announced last week might well be a game changer. Certainly we saw some serious short-covering in AUD/JPY and GBP/JPY in particular and the fact that USD/JPY was able to chew easily through fairly heavy selling between 89.50/90.25 is certainly a bullish sign. After being bearish last week, I’m certainly not suddenly turning bullish but I am going to sit on the sidelines until a clear trade emerges in either USD/JPY or the JPY crosses.
Talk of some more good selling interest at 90.60/70 in USD/JPY.
