Dollar/Yen Drama Continues

The coordinated move to weaken the yen overnight, with the blessing of the New York Fed and the Bank of Canada, bounced the dollar/yen up over 81.  It is prudent to believe that the 81 level will be defended today.

In September 2010, during previous Japan intervention, the dollar/yen fluctuated between 80 and 86 and intervention occurred at the 83 level.

Analysts are now targeting the mid-80's as the goal, say 85 or 86, over the next couple weeks.

The Japan intervention is clearly shown overnight by the move from 79 up over 81.  For today, watch to see if the 81 level can be maintained.  Some leeway may be given below but it is probably a safe bet that intervention will occur to defend the 80 level here on out at a minimum.