The Yen appears to be on the winning side of a recent return of risk aversion in the forex market. US stocks dropped after less-than-stellar investment data was published in the US. However, the JPY did gain from a positive manufacturing report from New York. The USD/JPY currently trades at a 2-week low of 90.02, from yesterday's opening price near 90.55.

No matter how much strength the Yen gained in recent trading, the truth remains that the JPY continues to trade within steady ranges against its primary crosses. The mixed movements of the EUR and CHF have resulted in somewhat volatile conditions for the Yen, but it seems to be to the advantage of Japan in both cases. The only concern the Bank of Japan (BOJ) seems to be carrying is regarding the status of Europe considering their recent debt woes. BOJ governors are rightfully concerned about spillover into East Asia, but no real effect has been priced in yet.