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The Japanese yen has traded very sourly recently, but stays under its October 24 highs where the low-yielding currency facing serious resistance against most of the majors. One of the important factors to estimate the steadiness of the trend for the Japanese yen has been the US stock markets, and the opposite connection between the Dow and the yen (and US dollar) has been something we have been seeing regularly. Friday’s price movement was a just right example of this, as the yen finished the day up 1.8 % vs the euro and more than three % against the Australian dollar and New Zealand dollar whilst the Dow forced 3.82 % by the end of the day. Going ahead, we believe this correspondence is going to remain and the odds are for further Japanese yen strength.
