Given recent action in Cyprus the Yen has strengthened against all major currencies and the USDJPY trade I discussed last week is notably weaker. European investors view the Yen as a safe haven asset despite weakness in the Japanese economy. I believe investors today are doing a trade reversal that is purely fear driven, where they had recently been shorting the Yen and long the Euro, they are now long Yen and short Euro. This will be short lived. Cyprus accounts for only around 0.2% of the economic output of the 17 European Union countries. One should not view this single day reversal as any fundamental change in the veracity of the trade. Underlying fundamentals that supported the trade still remain in place and affirmatively so. All Japanese ministers on Friday required to substantiate the trade were elected into position. I believe the USDJPY will weather the storm and bounce back shortly. I would use this event driven weakness as an opportunity to buy into the trade. Long USD, short Yen.