Finance Minister Noda said it's too early to start unwinding fiscal stimulus measures aimed at turning around the economy. It's not in a stage that the exit strategy can be implemented.

The JPY seems to be holding to the psychological 90 point. Core Machinery Orders late Tuesday night EST should provide some impetus in moving traders one way or the other. I'm watching this closely as it could lead to some volatility over the next few days.

Investors were optimistic about a recovery in the Japanese economy and that the Asian region will recover before the rest of the world as data points continue to provide a positive outlook, this time Japan's machine orders report. The data were a surprise and the yen appreciated against the dollar for the second straight day.

The yen appreciated against the dollar on Friday testing bids around the 89.45 level. Fujii said that the Japanese economy is still very unstable stating that it's still too early to know if a second extra budget is needed. Next interest rate decision is Nov 19.