Yesterday saw several economic indicators in both Europe and the U.S. come in below expectations. This resulted in a loss of investor risk appetite, leading to major gains for the safe-haven Yen. The JPY increased significantly against the Dollar, Euro and British Pound, and is currently in position to continue on that course today.
Depending on the outcome of the testimony today by the U.S. Federal Reserve Board Chairman, Ben Bernanke, the Yen could take advantage of a volatile situation and increase its profits. Yen traders will want to pay careful attention to the testimony. Any indication that the U.S. economic recovery is slowing down would be good news for JPY. That being said, if the statement comes in positive for the U.S. economy, risk sentiment could return causing the Yen to lose in afternoon trading.