What it Means:

Currency traders' confidence in the Japanese yen is low due to continued threat of deflation, and resultant low interest rates. Although a low yen may be a turnoff to these traders, it is essential to Japan's trading strategy - a lower yen means Japan's products are relativelye cheaper on the world market. This is good for the stock market which has risen strongly during the past year.

Action Steps:

Keep a watch out for further currency trends. If you hold Japan in your portfolio, keep it...but if you don't, then talk to your financial planner about what makes sense for you.