USD/JPY has been under intense pressure since falling through the 88.10 level, an area where Japanese quasi governmental bodies were steady buyers earlier in the day. Slumping US yields and fears of a global double-dip are prompting risk aversion, strengthening the JPY. In addition, Japanese retail investors are receiving margin calls on positions in JPY cross prompting long liquidation.
Dealers are beginning to debate the odds of intervention from the BOJ and few are dismissing the prospect outright. Some further buying by quasi-governmental bodies like the postal savings system seem likely first, though. 86.60 is next technical support for this pair. It trades now at 87.63.
