The rollercoaster ride in the Dow has triggered significant volatility in the Japanese Yen crosses.
With the exception of NZD/JPY and AUD/JPY, all of the other carry trades have recuperated their intraday losses to end the higher. Japan’s economy is crumbling under the weight on higher oil prices because they import nearly all of their oil needs. According to BoJ Governor Shirakawa, the surge in commodity prices could lead to lower profit and weaker growth and because of that they will remain on hold for the foreseeable future.