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China Eastern Airlines Financial Chen Donghai Currently, the main factors affecting the exchange rate in the foreign exchange market are global hedging, economic recovery and risk sentiment.　　The combined effects of these three factors determine the direction in which the dollar runs against the yen. After the global financial tsunami and economic crisis, Japan's investment in foreign capital deleveraging, after the sell-off of high interest currencies have been converted into yen to withdraw to Japan, so in the process of the yen strength, and other currencies to the yen weakened. Since January 2009, since the global financial situation has stabilized, as the yen's benchmark interest rate is the lowest in all currencies, the market has been picking up the tactics of the previous hedging trade, selling the yen and buying other currencies. Although the difference in interest rates for other currencies relative to the yen is much lower than before the financial tsunami, the spreads on the interest rate of the hedging trade are insignificant, but the income from the trade spreads is still very considerable, so since the 2009, a "small spring" has appeared in the hedging trade with the yen as the financing currency. Currencies rose more than 20% against the yen and some even rose more than 30%.　　The yen has strengthened, and currencies such as the dollar have been squeezed against the yen, as the global economic recovery has been questioned in the short term and the current round of interest-bearing deals has taken a beating. Global expectations of an economic recovery have helped keep the dollar high against the yen since March 2009. As the economy recovers, investment in places like Japan can chase higher returns elsewhere, so Japan's money flows to other areas where it has higher yields. After some news of the economic recovery in the US and around the world in March, currencies such as the dollar rose or stayed strong against the yen. But the recent announcement of a 0.4% drop in retail sales figures for April has given the economic recovery a big blow. Because the U.S. and other countries consumption accounted for about 70% of GDP, and retail sales directly reflect the degree of consumption recovery. The continued decline in retail sales today suggests that America's recovery is still fragile.　　Therefore, the pursuit of economic recovery funds need to adjust their thinking, so the speculation on the economic recovery of the sale of the yen needs to turn, the yen benefited, the dollar against the yen, such as the Sell-off. Another very important factor affecting the yen is the common risk appetite factor. At present, the risk appetite and aversion are mainly reflected in the world's main stock market, the Dow is the indicator of the two emotions. At present, the logical relationship between the yen and the yen and risk sentiment is that the risk appetite is rising, the yen is weak, the appetite for risk is falling and the yen is strong. Since March 2009, the Dow and the world's leading stock market indices have rallied, driven by Bank of America stocks, so currencies such as the dollar have risen or become stronger. But U.S. banks ' earnings in the first quarter of 2009 have been questioned, and the global economic recovery has been questioned, and the Dow Jones is under pressure to profit from the rebound because it is too big.Since May 11, the Dow Jones index has been visibly under pressure to fall, the market risk appetite has fallen and safe haven sentiment dominates, so the yen has strengthened and currencies have weakened against the yen. The current economic recovery, a combination of trade and risk sentiment three factors affect the trend of the yen, the recent expected to keep the yen strong, temporarily look for more yen than the dollar and other currencies against the yen.