Under The Radar: Don't Forget About The Yen
Remember that nasty selloff in late February. One of the causes for that selloff was the concern over the unwinding of the "yen-carry trade".
If you look at the chart above, you can see the big spike in the Yen back then, which exacerbated the declines in the markets.
While everyone was solely focused on the subprime credit markets here in the U.S. this week, don't discount the sleepy move higher in the Yen as well. More than a few market participants are involved in this trade, and when the Yen starts rallying, they start sweating.
I don't think it becomes a big problem, but it is worth keeping on your radar.