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What Yen’s Swings Will Do to Markets

The effects of the Japanese yen's fluctuations might be felt in the United States, but a few S&P 500 levels are more important, Raymond James Chief Investment Strategist Jeff Saut said Tuesday.

"I think that Japan has thrown the Hail-Mary pass. I think they pulled out all the stops, and when you do that and flood the system with liquidity, you tend to get volatility," he said.

"I'm paying a lot of attention to the 50-day moving average on the S&P 500, but I think you should also pay attention to the intraday reaction low of last week of 1,598."

On CNBC's "Fast Money," Saut said that the index falling to that level would be a warning sign.

"I think if we fell below that support zone right there, I would start to take some defensive action, as well," he said. "It is probably going to affect the U.S. markets here, depending on how volatile things get over in Japan."

Saut, however, remained bullish on U.S. markets.

(Read More: Stay Bearish on Japan: Dennis Gartman)

"I don't think it derails the recovery that we're seeing here," he said. "I don't think it derails the energy independence theme. I don't think it derails this American industrial renaissance that we're seeing."

Saut said that he had issued a target of 1,700 for the S&P 500 two or three months ago, not because of currency swings but because of economic forecasts for the second quarter.

"Good, sound advice would've been to take some of the money off the table as we approach 1,700," he added.

Trader disclosure: On June 11 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Grasso is funds long PAY; Steve Grasso is funds long HPQ; Steve Grasso is funds long MU; Steve Grasso is funds long NEM; Steve Grasso is funds long ZNGA; Steve Grasso is funds long DMND; Steve Grasso is funds long F; Steve Grasso is funds long GM; Steve Grasso is funds long TIVO; Steve Grasso is funds long QQQ; Steve Grasso is funds long SPY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami's wife, Linda Snow, works at Merck; Dan Nathan is short XLU June 38/36 put spread; Dan Nathan is long XLF short June 38/36 put spread; Dan Nathan is long FB June/July 25 call spread; Dan Nathan is long INTC long July 24 puts; Dan Nathan is long XLE short June 80/76 put spread; Dan Nathan is long LULU July 65/70/75 call fly; Tim Seymour is long AAPL; Tim Seymour is long BAC.

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