Yen Rallies on Dow Weakness

With the Dow down 80 points today, we have seen reversals in all of the Yen crosses.

Most of the pairs are either down for the day or unchanged. Carry traders are beginning to bail, but they haven?t given up quite yet. Bank of Japan Governor Fukui was speaking via teleconference today. He was slightly optimistic about growth and repeated his standard view that interest rates remain accommodative and will be adjusted gradually. The Bank of Japan has little reason to lift interest rates and this week?s data releases are not market moving. Therefore traders should continue to take their cue from the US and Chinese stock markets.