Yen Crosses Rebound as Dow Rebounds

The rebound in the Dow has helped to push the yen crosses higher. With most Japanese traders out for Golden Week, the price action in currency pairs like USD/JPY and EUR/JPY was concentrated in the US trading session.

Economic data released night supports yen weakness with cash earnings posting the fourth straight decline in March. Finance Minister Omi was on the wires today commenting on the need for the Yen to reflect fundamentals. There was some Yen buying on the back of his comments but the reaction did not last for long. The only piece of data due for release from Japan tonight is the monetary base, which is not a market mover. Expect the Yen pairs to continue to move in lockstep with the Dow.