Sentiment and fear will no doubt hold the greatest level of influence the Japanese yen's future.

A year ago, the most risk-sensitive currency was probably the high-yielding Australian or New Zealand dollar as yields were the primary source of speculation for traders. However, this dynamic has changed as global interest rates have trended towards zero while liquidity and fundamental stability have become a valuable commodity.

The theme in the markets this morning is a return of risk appetite.

The US dollar and Japanese yen both saw sharp reversals of their rallies from Thursday, as a pickup in risk appetite worked in the favor of higher-yielding currencies and "riskier" assets like stocks.

Is the Fed making the situation worse?

After having cut interest rates by 50bp this morning to 2 percent, ECB President Trichet is finally buckling down and signaling that he is ready to cut interest rates again.

Trading throughout the forex markets was particularly volatile on Thursday as risk appetite shifted wildly.

Winners share certain behaviors and beliefs.  Learn what they are.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for January 15.

Fed Chairman Bernanke has expressed support for the idea of creating a so-called bad bank that would allow the government to buy financial assets in exchange for cash or equity.