No comments from FinMin Noda today and USD/JPY continues to look soggy. We’re only 40 pips above all-time record lows and yet Japanese corporates are reportedly lowering the sell orders into the low 77s, which doesn’t show a lot of confidence in the ability of the BOJ to get USD/JPY back onto a higher plane.
If it was me who was directing BOJ intervention activity, I’d do absolutely nothing until the SNB makes a decision on the Swiss Franc. If the SNB put a lower limit in place on EUR/CHF, then I’d start buying USD/JPY and I’d add to the panic. Done properly, they could get USD/JPY back to 85 without spending too much ammunition.
