• USD/JPY under extreme selling pressure, extending downside as we write.
   
• The pair has hit fresh 1 1/2 year lows of 108.84, test of 107.50 likely.
   
• BOJ governor Kuroda crossed the wires today, saying that they are closely watching FX market moves and that they will take steps in FX market if necessary.
   
• One-sided volatility remains, sporadic direct intervention by the MOF or rates checking callls to dealers cannot be ruled out.
   
• We are of the view that intervention can only provide temporary relief. Advise selling all spikes.
   
• Charts are biased lower. Tests of 108 and then 107.50 levels likely.