Early morning trading saw the Yen drop to a 5-day low against the U.S. Dollar, reaching 91.79. The Dollar appears to be finishing 2009 with a 1% gain against the Yen, a far cry from the roughly 19% loss recorded in 2009. The greenback may see further gains against the Yen in trading today, providing that U.S. consumer confidence increases as expected. If not, the JPY may be able to reverse some of its recent losses.
With no major news events coming out of Japan for the rest of the week, the Yen's value will likely be influenced by news from America and Europe. The relatively slow trading ahead of the New Year appears to be negatively impacting the Yen, but traders should note that any negative economic indicator to come out of Europe or the U.S. will likely result in Yen gains.