Over the past 2 trading days, US stocks have plunged more than 400 points. The currency pair that has been hurt the most by this move is USD/JPY, which has now broken its 2 month trend line. Further losses are in store for this pair, particularly if existing home sales fall short of expectations on Friday. The merchandise trade balance and the all-industry activity index are due for release this evening. Higher oil prices should increase the country’s import bill, reducing the trade surplus in the process.