20070309 The world stock indices have a correlation to the Japanese Yen cross rates, the USDJPY and EURJPY. This is because of the theory of the Yen carry trade unwinding. They sell assets such as foreign stocks and commodities and buy Yen to repay the 'almost zero' Yen loans back in Japan. If the EURJPY or USDJPY resume the downside move from the retracement (similar to the stock indices), there could be more carnage ahead for financial markets. But this is only a 'what if' scenario, and by no means will turn out to expectations.