Hows this for a strategy? Buy USD/JPY on dips to 86.95/00 with a stop at 86.80? Sounded logical to me, and the rest of the world seemed to agree. Bot the buy order and the sell stop would have been executed in nanoseconds as USD/JPY plunged through the former support area at the US open.

Traders say some large bids emerged at 86.50 on the machines and that was enough to settle the market for the time being.

If US CPI shows a whiff of deflation, they might go after those bids quick.