Since the JPY 3 trillions intervention package on October 31st, which led the USDJPY up to 79.50 within a few minutes, the question around the target level Azumi san must have defined seems to be a fair one.
Indeed, since then, the spot first took a bearish biais down to the 78.00 region in spit of a second Asia morning move to 78.40 on November 1st, and from that point it started to oscillate within 20-25 pips daily ranges around that level. And up to today, it started to look like the Japanese government was relatively satisfied with that short term outcome of the intervention, taking into account the bullish pressure of the Euro sovereign crisis on safe heaven currencies.
But the range broke today, with a spot swinging from 78.10 levels down to 77.58 and now stuck below 77.80. And if one can accept the idea that the political drama taking place in Italy had an impact, the next interrogation is to find out if the Japanese government will make another push to bring the spot back in the range and close to 78.00.
One clue may be that the only time we hit 77.80 since the October 31st intervention, there was a shift across 78.00 the next morning during Asia hours, before a stabilization in the range discussed above.
But to find out, I guess we'll have to sleep another night and wake up early to ride the trend in case ;-)
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