Exchange traded funds (ETFs) that target the yen fell sharply Friday as Japan’s currency dropped to a fresh 10-month low against the euro.

The yen traded lower against its major rivals to end the week following an upbeat U.S. jobs report and on speculation the Bank of Japan will keep interest rates steady after the devastating earthquake.

The $167 million CurrencyShares Japanese Yen Trust (NYSEArca: FXY) was down nearly 2% in morning U.S. trade Friday. The yen ETF dropped below its 200-day moving average, a bearish indicator for technical analysts.

ProShares UltraShort Yen (NYSEArca: YCS), a leveraged inverse ETF that profits when the yen weakens vs. the dollar, was among Friday’s top percentage gainers with a 3% rise.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

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