The big news overnight has been the sharp move in the Japanese yen. At the end of last week, following the Bank of Japan’s (BoJ) monetary policy meeting, Governor Kazuo Ueda stated that he was quite relaxed about the fall in the yen, as long as it didn’t have a serious impact on the domestic economy or inflation. This came after the USDJPY pushed and held above a fresh 34-year high of 155.00, a level considered by many to be the ‘line in the sand’ for direct intervention. Early this morning the USDJPY briefly topped 160.00. But this was met by a wave of dollar selling which quickly drove the pair back down below 155.00 before bouncing. It’s unclear whether the BoJ has intervened directly or not, and the situation has been confused by a Japanese market holiday. But the dollar is down this morning, while there has been little movement in crosses outside of those including either US dollars or Japanese yen. But as far as traders are concerned, a break above a USDJPY rate of 160.00 appears to trigger yen buying. It will be interesting if that level continues to act as a cap for the rest of this week.