Japanese Yen: Be careful of More Moves by China

The Japanese Yen is stronger against all of the major currencies with the exception of the Australian and New Zealand dollars.

Even though the US stock market has not responded to the move in the Shanghai index, carry traders need to be very careful in the weeks to come. If the Shanghai stock market rebounds and refuses to fall, the Chinese government will become even more anxious about cooling the stock market. As a result, they could take more aggressive measures which would only put further pressure on carry trades. To read more, please see our Special Report: Chinese Stock Markets Collapse, Dow Moves Limited - Chances for a Yuan Free Float Increases.