The recovery in US equities has led to a continual recovery in the Japanese Yen crosses.
Even though leading indicators improved marginally in the month of May, Japan is still deep in the woods. China reported slower than expected GDP growth which means that their demand for Japanese goods could start falling. This is a problem that could exacerbate following the August Olympics. Department store sales are due for release tomorrow. The recent drop in consumer confidence suggests that spending will be weak.
