The Japanese yen rose across the majors on Friday, though the low-yielder actually weakened versus the greenback, as traders sell high-yielding and risky assets.
In fact, many of the same factors we mentioned above that are weighing on the commodity dollars are doing the exact opposite for the Japanese yen, and we’re seeing that the correlation between EUR/JPY and the DJIA has faded. That said, all of these assets are still essentially range trading and consolidating the larger moves from earlier in the year, but there is potential for the Japanese yen crosses to plummet, with the exception of USD/JPY. Indeed, USD/JPY is trading on the whims of the greenback and will likely continue to do so within the next week of trading.