There has been a fast rise in Yen due to the unwinding of the carry trade. The EUR/JPY and GBP/JPY pairs have seen an unbelievable fall in value from the peak in such a short amount of time.

Now they want to stop the Yen from rising, probably because some major players have sold options at the level of 0.90 for Jpy/USD.

Could it also be that some financial entity or hegde fund is in trouble because of the carry trade that such funds have been doing for sometime to collect the carry interest cost?

Future will tell us who is on the wrong side of the Yen trade.

This can be just talk to scare the buyers of Yen, but it can also be for real if the central bank of japan decides that it is important for its export to stop the rise.

We will see whether this is just smoke or whether it is real.

Any any case, REUTERS is reporting that if intervention takes place, it is most likely that Japan will have to do it alone!

"TOKYO (Reuters) - The Group of Seven (G7) financial heads warned against excessive volatility in the yen's exchange rates and said in a statement on Monday they would cooperate as appropriate."

"Many market players suspect Japan may step into markets if the yen rises above 90 yen per U.S. dollar, but they doubt Tokyo's intervention alone would stop the yen's gain."

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