USD/JPY made a quick move from 88.60 to the 88.80s on talk the BOJ was calling around to dealers in London and New York, gauging their opinions. Some view this as a potential precursor to intervention. We have it on good authority that Japanese officials have been casting a wider net today then normal, not merely talking to Japanese banks today, for what it’s worth.
The market is said to be heavily short at present with a sea of stop loss orders building above the 89.50 level. Perjaps the BOJ is trying to spark a bit of a short-covering rally without having to spend any live ammunition.