The Japanese Yen crosses were mixed today with USD/JPY rallying but many of the other yen crosses dipping despite a 42 point rally in the Dow.
After breaking higher last Friday, there has not been much follow through in US equities, which leaves many traders nervous about whether risk appetite is really here to stay. The latest merchandise trade balance report was weaker than expected, but the surplus still increased last month. The strength of the Japanese Yen is beginning to take a toll on exports, particularly in the electronic components and machinery sector. Imports on the other hand rose 11 percent, mainly due to the rise in oil prices.