Over the past week, the Japanese Yen crosses have moved in lockstep with the Dow and today was no different. With the exception of EUR/JPY and CHF/JPY, all of the other Yen crosses gave back its prior day?s gains.
The growing problems in the US continue to weigh heavily on the market?s appetite for risk. Even though it may feel painful for carry trades at the moment, the 3 percent that we have seen thus far is marginal compared to how much carry trades have moved historically. There was not much Japanese Data to help the Yen this week but the week ahead is more promising with a relatively busy Japanese calendar, which includes the corporate goods price index.