That’s a fair bit of volatility by anybody’s reckoning. This volatility is being created by uncertainty surrounding the upcoming G20 and G7 meetings, and whether any comment will be made regarding Japan’s attempts to weaken the Yen. The US Treasury under-secretary seemed to be quite clear that the US was giving full support to Japanese efforts but we have heard a different story from an unnamed G7 official who said they were concerned by excessive Yen moves.
This is a dream market for a trader; put all bias and views out of your head and wait for ‘silly’ moves in either direction before entering the market. I think that official comments from now through Friday are likely to be talking the Yen up but Toshin and hedging flows are overwhelmingly Yen-negative. This should mean that rallies are well met as indeed dips will be.