We seem to have found a relatively comfortable perch in the 85.60/70 area for USD/JPY with scattered reports of Tokyo names still buying and steady talk of selling from Japanese exporters.
My guess is that many exporters have been holding onto dollars in anticipation of intervention and are quite happy to let them go on the 85-handle after seeing the buck slide to an 82-handle just a day ago.
Earlier dips were met with very large bids at 85.00. It will be interesting to see if that demand is pushed higher during the NY afternoon to paint a pretty technical picture on the near-term charts.
A short while ago the White House issued a “no comment” on JPY intervention and all currency matters.