Against its US counterpart, the Japanese yen has been brought up to a significant make or break level. Closing the day just below the 106 level, USDJPY is within stone’s throw of a year-old downward sloping trendline that marks the boundary of the dominate trend for many traders. Looking across the other majors however, this same tension isn’t felt - reflecting a settled interest in risk trends. Today’s event risk contributed little to the ongoing battled between risk appetite and risk aversion. On the other hand, the markets and risk may be thrown for a loop tomorrow. US NFPs will no doubt shape growth forecasts and have a significant impact on equities - and therefore the carry trade.