Japanese Yen Crosses Rebound

The recovery in the Dow has helped to strengthen all of the Japanese Yen crosses.

Economic data from Japan was mixed with the merchandise trade balance narrowing and the all industry activity index increasing. The rise in oil has boosted the country’s import bill but at the same time, it has yet to stifle the Japanese economy. As a major importer of oil, Japan is very vulnerable to the rise in crude, but the latest economic data suggests that higher energy prices have not had a material impact on the Yen. Their recovery is still fragile, which is why the IMF warned Japan against raising interest rates in the interest of preserving their expansion.