There is a virtual consensus in the marketplace that the yen will soon hit 120 to the dollar and eventually 125 later in the year.
While U.S. financial officials appear to be waiting for further developments, Japanese authorities have openly indicated they are tolerant of a weak yen.
Repeated hints from both Japanese and U.S. officials have reinforced this perception in the market. In short, the dollar appears likely to move between 116 yen and 122 yen in the near term.