Yen continues to correlate with stocks - Scotiabank

Analysts at noted the continued correlation between stocks and the Yen.

Key Quotes:

The Nikkei gained strongly yesterday and managed to buck the trend of mixed to weaker global stocks with a modest gain overnight.

Given that USD/JPY has generally tracked the directional influence of the equity market closely in the past few months, gains should help underpin USD/JPY (assuming no broader or deeper risk aversion trends develop today).

Japan reported a slightly lower than expected trade surplus for March earlier (JPY755bn versus 834.6bn expected)."