The Yen and the Germany vs England football game

Nikkei has hit today a 15-month closing low while the Yen has hit a 15-year high against the dollar. The USDJPY broke 85, easily took out a bidding zone at around 84.80 and managed to reach 84.15 in the European morning as the Japanese Finance Minister Noda commented in a news conference that recent currency moves are one-sided, excessive and disorderly moves could harm the economy, and that he is closely monitoring currency moves with great interest (so do we!). Well, thanks mate, very inspiring comment! Still no comment on intervention. Then suddenly, at around 1.20pm London time, the pair dropped below the 84.00 mark as the EURUSD broke 1.26, maybe on anticipations of US figures from insiders or guys who pretend to be insiders I don't know but the thing is the existing home sales at 3.00pm actually were pretty bad (-27.2% MoM vs -13.4% expected)... The EURUSD as I write jumped back to 1.27, the USDJPY to 84 after it touched 83.6 and the Dow back from a journey down to 10K. A better than expected Richmond Fed may have helped, but I guess that's more on anticipation that FED will intervene further to the bad Economic figure or the correction of an overaction before, only TLofT knows. Back to the USDJPY, according to Informa (IGM) the bears now target a key downside objective around 83.51.

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