Rising Yen Weighs on Japanese Stocks

With the market shifting to risk-off mode the last few days, the Yen ETF (FXY) broke above trend line resistance. The Yen has been moving higher since early July and the Nikkei 225 ($NIKK) has been moving lower. In fact, notice that this seesaw relationship has been quite strong in 2012. Export driven Japan is still dependant on the Yen for growth.

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