Japan takes a hit pre-summit

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Japanese shares declined on Wednesday, with the Nikkei Stock Average down 1.2% at 8,660.29 ahead of a European summit set for later in the global trading day. Investors are hoping for details on how the region plans to tackle its debt crisis but BNP Paribas strategists said “closure on the euro zone saga is far from being reached,” and noted that lack of clarity on Europe sent the U.S. dollar to a new low against the Japanese yen. Japanese exporters lost ground on Wednesday with Sony Corp. down 1.7% and Canon Inc. down 1.9%. Canon late Tuesday reported a more than 14% rise in quarterly profit.

Waiting on more news to come out of Europe before I decide to fully short, hopefully later today we figure out what the plan for Greece is. We need a lot more details on dealing with debt in Europe before we proceed on anything.

The yen is still above the dollar due to no answers coming out of Europe yet, and the U.S. being such a big holder of European debt.

Gus FX