Japanese Yen Lower Against Majors as Stocks Prices Rebound

The Japanese Yen has been battered thus far this week as stocks rebounded, weighing on the safety-linked currency. Indeed, only the US Dollar managed to lose ground to the Yen, slipping -0.6%. Still, the MSCI World Stock index has yet to break resistance at January’s high and a double top remains a possibility, an outcome that is likely to boost the Japanese unit in the days ahead if the correlation to risk appetite continues to hold. That in and of itself can be reasonably questioned considering the world’s second-largest economy shrank by a record -15.2% in the year to the first quarter, with fundamentals threatening to undermine the Yen’s safe-haven status. Where does the currency go from here? Our DailyFX team weighs in and offers their top ideas for trading JPY in the days ahead.