The aggressive easing measures of the last two months are bound to have some effect and I find it hard to believe that we simply return to levels near 77.00, where we were before the easing cycle began. USD weakness is still a relevant theme so whilst USD/JPY should struggle too break too far below 79.00/25 in my view, JPY bears may get a bit more bang for their buck on the crosses.
The other variable is stealth intervention by the BOJ and whilst they have been quiet in this department over the last 5 or 6 weeks, I think we can expect to soon see a bit more activity as they will not be happy with USD/JPY below 80.00.
