The Japanese stock market took heavy losses in trading Tuesday, leading to impressive gains for the Yen a day after it sunk amid a global stock rally. Against the Euro, the yen moved from 133.22 to 132.77, signaling that the currency is rebounding from its previous losses. With the Nikkei 225 Stock Average falling for the fifth day straight due to concerns of deflation, investors seemed to be turning back to the yen as a safe haven currency.

At 23:50 GMT today, Japanese trade balance figures will be released. With most analysts predicting a positive number, traders can take these figures as an indication of where the yen is moving. If the predictions do indeed come true, traders can expect the JPY to further its gains, as there is a positive correlation between export demand and currency demand.