Recently, the Yen has recorded some historic highs against the U.S. Dollar as it reached levels not seen in over 15 years. This is largely due to both countries having practically the same Interest Rates. Therefore, the advantage of holding money in U.S. Dollars and other currencies increased as Japan historically had comparatively low Interest Rates to keep the Yen weak. This was to maintain Japan's exports. However, the global economic recession has hindered this strategy, leading to disastrous consequences on the Japanese economy. This shows that a strong currency is not always an advantage as Japan has witnessed.
The Yen is likely to remain strong in the coming days, weeks, and months, as the world's economies continue to deteriorate further in what is the worst economic crisis since 'The Great depression.' A more desirable and weaker Yen may only be reached when the U.S. and global economies start to recover. The earliest this may happen in the best case scenario is in the 3rd quarter of 2009. Forex traders are advised to look at the strength of America and Europe's economy today as they make decisions on trading the Yen.