Mild Move in the Dow Leads to Mixed Performance in the Japanse Yen Crosses

The Japanese markets were closed for a public holiday in Japan last night, so there was no economic data released.

Tonight we have the Eco Watchers index but that is not expected to be market moving. The big event this week is the Bank of Japan interest rate decision, yet even that may not cause any significant movements in the Japanese Yen since there is only a 3 percent change for a quarter point rate hike. Instead, Yen traders should continue to keep an eye on the Dow. Should the stock market resume its rise, we could see fresh gains in carry trades. The dollar could extend its gains against the Yen given the bullishness of last week?s non-farm payrolls release. Major resistance for the pair is not until 119.
[B]Written By KAthy Lien, Chief Currency Strategist[/B]