On the back of the massive natural disaster from the earthquake, the tsunami and the ongoing nuclear crisis, the rating agency Standard & Poor’s warned Japan that they will cut to negative the country’s sovereign rating. The reconstruction cost is huge and the poor public finances of Japan will suffer a big shock after government delegates stated that there is no willingness for a tax hike, which will have a direct impact to the fiscal deficit. However, the rating agency left an open window as they have mentioned that many depend on the future handlings of the government. Upon the announcement from the Standard & Poor’s at 03:10 GMT, the USDJPY appreciated by some 37 pips to hit a session high of 81.76, paring some loses from the previous hours, currently the US Dollar is trading against the Japanese Yen at 81.55. The EURJPY pair gained some 38 pips to hit a session high of 119.95, now it is trading at 119.67.