There is a risk that the yen will fall to its weakest level since 1986. The prospect of government intervention to support the yen does not make bearish traders uneasy. According to Sumitomo Mitsui DS Asset Management Co. and Mizuho Bank, as investors continue to sell yen and pursue higher-yielding dollars, the yen could fall to 170 yen to the dollar, about 10 yen away from current levels. The yen has fallen nearly 12% since the beginning of the year, and investors currently see few catalysts that can reverse this trend, including possible buy bids from the Bank of Japan. The market trends since early May have highlighted this point. After a record 9.8 trillion yen ($614 billion) entered the market, the yen has returned to its original position. "The dollar may quickly approach 170 yen," said Nick Twidale, a yen trader at ATFX Global Markets. "Short-term intervention is ineffective."