Once again, it shows a lack of follow through after thoughts of intervention.

The dollar was reluctant to follow movements in the equity market, but when the selling became fierce, it started to respond.

Normally that would strengthen the euro.

If the yen continues to strengthen, then it's not a good thing for the Japanese because their exports aren't going to be competitive into the U.S.. I think as you get to 105 and pull below, it's going to hurt the Japanese stock market. So, too strong of a yen is not good.

People are getting ready for the end of the tightening cycle and they are beginning to feel like the dollar?s rally is nearly over.

It's a lose-lose situation for the yen. Traders feel they shouldn't raise rates because the economy is still too weak at this point.