Furthermore, you have to keep in mind that the PMI numbers in the United States came out hotter than anticipated during the trading session on Thursday. So that suggests that the fed still has a lot of work to do. Now, whether or not that's true or whether or not that actually ends up being the case in the end, remains to be seen.

But regardless, the interest rate differential between the two economies is wide enough to drive a truck through. And as long as that's the case, we are going to continue to see buyers jump into this market and simply hang on to the trade. You get pain at the end of every day, so there's no point in fighting it. The Bank of Japan did recently intervene, but that intervention has only emboldened buyers because it shows just how much trouble Japan's in.

Invention Fail? Possibly.

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It's also worth noting that we managed to reach right in the middle of the intervention candle. And that, of course, is a very weak sign for the Japanese yen. Given enough time, I do think we go much higher. And I think at this point we are still trying to get to the ¥160 level, but it's going to take a while because the market is likely to continue to see a lot of noisy, kind of grind to the upside, and short term pullbacks will attract value hunters that are trying to take advantage of what has been a very reliable uptrend.

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