Takeuchi says that the latest joint effort by the US and Japan was very effective in pushing back against the market expectation of just one-way traffic in USD/JPY. In his words:"The fact the US stood behind Japan and took action has a huge symbolical meaning. What has become clear is that there are effectively no constraints preventing Japanese authorities from intervening."Adding that: "If I were running a hedge fund, I won't think about making bets on USD/JPY now."Well, it is certainly effective in the sense that markets - or at least I was - were highly doubtful about US wanting to step in to lend a hand to Japan in this instance. As mentioned before, any help by the US risks sending a message about dollar policy more than it is about an isolated incident in trying to help restore order in the currency market. And that is something that is quite off-brand, especially as they do have a pension for labeling countries as "currency manipulators" too.In the immediate term, I can see this as being a bit of a deterrent. But in the big picture, USD/JPY will continue to be dictated by the fundamentals. And unless the US plans on deploying unconventional tools i.e. currency swaps and/or Fed operational tools, then the looming threat is likely to be more limited.It is more of a case that the symbolic nature of the intervention is much more threatening and sends a stronger message to traders rather than the act itself. But if the fundamentals do not corroborate, how long can this keep up?In the meantime, Takeuchi argues that USD/JPY is likely to observe a range around 155 to 162 for now (quite a wide call range, pfft). Adding that: "If the yen manages to stay stronger than 160 per dollar for another week or so, markets will see that level as the near-term bottom and start pushing up the currency."That being said, he goes on to say that both sides will step into the market again if that were to happen."If the yen shows signs of drifting lower, Japan and the US will certainly intervene again. After getting so deeply involved in Japan's efforts, the US risks losing credibility by allowing the yen to drift lower again. The risk of a further sharp weakening of the yen has diminished significantly." This article was written by Justin Low at investinglive.com.