Suddenly the clouds are beginning to part

USD/JPY recovers European decline as sentiment improves

USD/JPY is back up to 118.16 from as low as 117.33. It's still down a quarter-cent on the day but the mood has certainly shifted.

This is a very tough market to make sense of but here is what I believe: It's not that bad. The Fed is a bit clueless and China is making it up as it goes along but there's no crisis unfolding.

It's still too early for the 'all-clear' but if stocks can finish higher, then I think the bounce lasts.