Reuters is reporting that Japan will look to increase the ceiling for JPY borrowing specifically for FX intervention by 5 trillion in 2011/12. This will give them ammunition in the order of 35 trillion JPY. Remember that Japan spent just over 2 trillion JPY on intervention on September 15th. There is a train of thought in the market that Japan will do something extra special early in 2011 to try and drive USD/JPY back towards parity.
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