Stock Market Rally Drives Yen Crosses Higher

All of the Japanese Yen crosses rallied on the back of the 200 point rise in US stocks.

Risk appetite continues to be the dominant driver of the Yen crosses and will continue to be in the coming week. Bank of Japan Governor Shirakawa said today that he believes growth will regain momentum after a temporarily slowdown. The price action in the Yen indicates that the market does not believe him. Japanese consumer prices are due for release next week and given the recent strength of the Yen, CPI growth is expected to slow.