Yen Down on Intervention Concerns

The Japanese yen posted its first daily drop against the U.S. dollar after 5 days of gains as the Japan’s Finance Minister said that the currency intervention will be used if needed to keep the yen from the excessive appreciating.
USD/JPY rose from 87.34 to 87.81 as of 8:30 GMT today with a daily maximum at 88.28. EUR/JPY rose from 125.80 to 126.87 after reaching its daily high at 127.40 — its peak since November 10.
The yen appreciates against the dollar since August this year and it reached its new 13-year minimum yesterday.
The U. S. Federal Reserve cut the interest rate below the Japan’s level making the dollar a less desired currency and opening a new possibility for the yen to continue strengthening.
Other Japanese officials believe that the intervention is a needed step and also a very probable one considering the recent currency gains and the ongoing global recession.