Japan’s financial markets are closed today for a National holiday but this does not mean that the BoJ is not watching the market. My information is that the BoJ will not be intervening heavily and that they will initially rely on verbal intervention to try and stem the JPY rise. They realise, as does the rest of the market, that China’s increased interest in JGBs is increasing the demand for the Yen and there is not much point in trying to fight this just yet. Nevertheless, we can expect to see Kampo appear from time-to-time to try and slow down any speculative surges.