Following the agreement of the G7 countries to intervene jointly in the forex markets (for the first time in more than 10 years) to stop the yen’s rise against the US dollar, the Bank of Japan intervened in the forex market at 9:00 a.m. Tokyo time.

The coordinated intervention, requested by Japan, will be carried out in each country’s foreign exchange market intermittently throughout the day (meaning, it’s not over yet, don’t hold shorts in the yen crosses today wherever on the planet you live!).

The move represents a major shift in forex policy for the US and Europe, which have not intervened in the currency markets since 2000.

Soon after the BOJ intervention, the yen dropped against the US dollar to the 81.xx range from above 79.xx yen. The EUR/JPY forex pair, which traded in the 110.xx range in the last hours of North American trading is currently (05:30 am London time) at 115.xx Congratulations to those that made some fast money!

For those of you who, like, didn’t have an open (long) position, here’s the hourly chart of the EUR/JPY forex pair so you can drool some

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80% of Sweden’s largest companies reported earnings that exceeded analysts’ expectations last quarter, pointing to the possibility that the largest Nordic economy may be headed for the biggest economic rebound in the European Union.

So why is the euro down against the dollar and the yen today?

Here’s my crazy prediction (ok, it’s not a prediction, it’s a wish ):

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The USD/JPY pair  insists on hovering over the 85.00-86.00 area. It’s high time we see some sort of intervention (I’d rather it be real rather than just vocal) soon if we are to trust BoJ which a couple of weeks ago announced they would consider action at the 85-level (according to the Wall St. Journal)

The current 4-hourly chart of USD/JPY:

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The US dollar was higher against most of its main counterparts except the Japanese yen as investors’ willingness to move into riskier currencies and assets took a hit from weak Japanese economic data (industrial production going down, unemployment on the rise) and remarks by St. Louis Federal Reserve Bank President James Bullard, who warned that the US economy was in danger of copying Japan’s deflationary “lost decade.”

Will we see the USD/JPY hitting 84.83 and diving below it soon? Take a look at the weekly chart:

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