USD / JPY pair continues to gradually move away from level 80, reached 83.25 at night and in any case, it was a relatively quiet Asian session. To a large extent, the most recent rise in the currency pair reflects the improvement in the dollar. U.S. currency has supported a sharp expansion of interest rate differentials, and that the ten-year Treasury securities yields rose 50 basis points since the adoption of the Fed decision on the QE2 earlier this month. At the same time, the yen was the weakest currency since the beginning of the month, losing 3.3% against the dollar. The yen weakened against the dollar and also this month, despite the debt crisis, flaming on the European periphery. This observation in itself is interesting, and will be a surprise to most market participants. Certainly, it deserves the most attention in the next few trading sessions.
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