"Nervousness" - this is the best word to describe trading in the yen earlier this week. The tone of the general weakening of the dollar pushing through a couple of USD / JPY almost to the level of 80.00, followed by a surge to nearly 81.00, mainly because of fears about returning intervention. Bank of Japan will hold a meeting at the rate later this week to be able to respond after the FOMC meeting on Wednesday evening. Naturally, this led to increased speculation that the Bank of Japan may participate in the further purchase of assets with a view to limiting the growth of the yen, particularly in view of reducing the desire for global coordinated action on the eve of the G20 summit in Korea later this month.
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