Even though the fundamentals for the Japanese Yen and US dollar may not look good, the depth of their associated bond markets offers considerable support.

"Global debt markets are hanging in the balance as China shifts its wealth around. The advantage here goes to those nations that built the deepest bond markets over the past decade. The last thing China wants is money locked up in a market it can’t exit if things go awry in the global economy."

Source: Bloomberg, Bill Gross Takes Backseat to Real Big Money: William Pesek, 22 August 2010