Led by a major breakout in USD/JPY, all of the Japanese Yen crosses are higher today despite the drop in the Dow.
The divergent behavior between the stock and FX markets indicates that both equity and currency traders are only beginning to price in stronger US non-farm payrolls data. If we see payrolls in excess of 100k, traders will question whether the Fed will lower interest rates at the end of the month. If they don?t that would be perceived as negative for the stock market and positive for the US dollar.
[B]Written by Kathy Lien, Chief Currency Startegist for DailyFX.com[/B]