“I’ve had worse!”

Long-time readers of FX Briefs, and FX Hub before it, know of my fondness for the scene in Monty Python and the Holy Grail in which King Arthur systematically removes each of the limbs of the Black Night. USD/JPY is the Black Night, saying “I’ve had worse!”.

In 1998, during the LTCM meltdown, USD/JPY fell from 136 to 111 in one day. The Fed came in for the BOJ that day and bought USD/JPY. Today’s episode has not reached that level yet, but a little well-timed intervention could perhaps steady all the markets. DO NOT BE SHORT USD/JPY DOWN HERE!.