This morning, when most Asians were still sleeping, the Japanese government started another round of massive currency-market intervention. Recent Euro debt crisis has caused Yen, perceived as a safe haven, to strengthen to a record high at around ¥75.31 versus US dollar. The intervention has pushed greenback up as much as 5% against Yen.

However, season investors will recall that Japan’s unilateral interventions were hardly effective. As shown in the chart below, they have two major interventions this year, March and August, both triggered a big currency move, but could not change the long term trend. Will Bank of Japan succeed this time?