All of the Japanese Yen crosses are up strongly today thanks to a recovery in US stocks.
The price action in the Yen crosses suggest that we could see a more meaningful rally which is supported by the stories in today’s Wall Street Journal. According to the financial paper, Japanese firms are beginning to suffer as a result of the dollar’s weakness against the Yen. In the fourth quarter for example, Toyota Motor Corp approximately $194 million in currency related losses. We expect this trend to continue.