Japanese Yen Crosses Hold Near Highs

Japanese Yen crosses stabilized near their monthly highs as the Dow waits for more direction from tomorrow?s non-farm payrolls report.

The only piece of economic data to be released from Japan tonight is leading indicators, which are expected to drop materially. There was an article in the Financial Times today that talked about the deflationary impact of the cell phone price war in Japan. Since February, consumer prices have hovered near zero, giving the Bank of Japan little flexibility to raise interest rates. With the cell phone war, the central bank will have even more difficult time justifying a rate hike.

[B]Written by Kathy Lien, Chief Currency Strategist for DailyFX.com[/B]