Japanese Yen crosses crumbled under the weight of the Dow.
Even though EUR/JPY hit a record high during the European trading session and CHF/JPY climbed to a 17 year high right before the US open, most of the Yen crosses struggled throughout the US trading session. The fear of further trouble in the banking sector has taken a big toll on risk appetite. There is a lot of Japanese economic data due for release this evening including unemployment data, consumer prices, retail sales and industrial production. These reports have a better chance of being weak than strong, but that may only have a minimal impact on the Yen. What matters now is whether the Nikkei follows the Dow lower and if it does, the Yen crosses will continue to weaken.