japanese housewives are formidable forex traders, and BOJ isn't anything to laugh at either. look for usdjpy to 125, the world doesn't seem to be ending just yet.
I see no reason to be bullish yet, I have a short bias until the market tells me otherwise. Sell the rallies.
Some Japanese Banks talking the JPY stronger - unwinding of "carry trades". They look for 117.50 USD / JPY today. Quote : " The dollar fell against the yen on speculation Japanese investors will repatriate earnings from U.S. debt holdings amid concern credit-market losses will deepen. The Treasury is due to make coupon payments of $22.6 billion in government debt tomorrow, according to Wrightson ICAP. The dollar has dropped 2.7 percent versus the yen since July 20, when a collapse of the subprime-mortgage market caused a plunge in global shares. "
I'm bullish on USDJPY! I already entered higher, but I'm adding at 115,20 averaging down. The market is panicing for no reason, today there was a bad data in pending home sales, but is not due to the credit crunch but because interest rates are now higher, and effects in the market started to show up! Add it a little of panic in the housing sector and this is it. Nevertheless the game is now about volatility and I think we've already seen the big move. My stop is at 113,50 and I would re-enter lower. The JPY made already a big correction ag the USD for this year. Tomorrow we have the ECB, but today event will not change their reaction and for them is important to cool down the markets so I think they will not say anything against it. Good luck traders out there!