U.S. Dollar Collapses Against Yen

If a currency were to move say about 1 percent against another currency, it would be considered a major event, so when the yen soared by over 4.5 percent against the U.S. dollar after hours, it is almost an unprecedented situation.

The soared yen soared to about 77.31 against the U.S. dollar Wednesday, giving the USD/JPY pairing an extraordinary move.

If Japanese authorities haven't intervened by the time you're reading this, we could see a plethora of speculative selling of the dollar today.

Credit default swaps in Japan have also soared, with five-year CDS on Japan being quoted at 117 basis points on Wednesday after expanding to as high as 124 basis points Tuesday.