Verbal warnings will likely be followed by intervention

The speed and extent of USD/JPY gains reflects awful state of positions

Clearly few are sufficiently hedged for a yen drop of this extent

Japan likely to adopt stealth methods in guise month-end repatriation

With Japan insurers set to invest new funds that tack may have to change

BOJ has ample reserves to slow USD/JPY's rise ($1.25 trillion)

Historic intervention have seen BOJ sell or buy many billions daily

Huge BOJ intervention successfully slowed USD/JPY ahead first 100 test

Slowing USD/JPY (curbing volatility) should be BOJ's aim

Unlikely that a line in the sand can be successfully defended