The Japanese Yen (JPY) appears to be on the selling side of many trades recently. The island currency has suffered deep losses to a number of its primary rivals, primarily the British Pound and US Dollar. Against the Pound, the JPY has plummeted and currently trades at 135.75 after coming down from 136.50 - a 3-week high for the pair - earlier this morning.
Asian stocks saw modest gains yesterday, and currencies in the region appear to be in decline as a result. If the NFP data from the US today can spur market optimism traders may see a continuation to the trend of rising equities. Many investors are expecting a strongly positive NFP report and this fact is being priced in. So long as the release is in line with expectations, more or less, we should see the JPY continue its recent decline. If risk aversion returns in force, however, the Yen may yet become resurgent.