With the Dow up close to 100 points, the Japanese Yen has weakened against all of the major currencies.
As we have said, the Yen will move almost predominately to the tune of the Dow and nothing else. Last night, the Japanese trade balance was much stronger than expected. The market was looking for the surplus to shrink from Y671.2B to Y235.5B but instead it rose to a whopping Y743.2B. It mattered little that exports saw the fastest pace of growth since November 2002. Instead, Yen trades should keep their eyes on the Dow.
Written by Kathy Lien, Chief Currency Strategist of DailyFX.com