The go-to haven currency, Japanese Yen flexed in muscles in early Sydney, gapping a whopping 100 points higher against the US Dollar. USD/JPY plunged to 104.13 low before settling at 104.35 from a New York close of 105.35. The Dollar’s fall against the Yen since Friday has been relentless, from 106.45 to 104.13 this morning.

We can expect Japanese officials to initially talk the Yen lower, and FX markets could ignore them. That said, if panic continues to reign, and the fall in USD/JPY is fast and furious, experience tells me we could see the Japanese Ministry of Finance instruct the BOJ to intervene and smooth the markets.

After this morning’s spike lower, we find immediate support at 104.10, 103.80, and 103.50. Immediate resistance can be found at 104.50 and 104.90. Look for a choppy trading session with a possible range trade today of 104.10-105.10. Beware the BOJ.