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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549





FORM 10-K





xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended October 31, 2010

or

 ̈TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from  to

Commission File Number 001-33298





CurrencyShares® Japanese Yen Trust

Sponsored by Rydex Specialized Products LLC,

d/b/a Rydex Investments

(Exact name of registrant as specified in its charter)







|                                                               |  |                                  
|-------------------------------------------------------------- |  | ---------------------------------
|New York                                                       |  | No. 37-6416176                   
|(State or other jurisdiction of
incorporation or organization) |  | (IRS Employer Identification No.)



| |  |                                                    |  |           
| |  | -------------------------------------------------- |  | ----------
| |  | 9601 Blackwell Road, Suite 500
Rockville, Maryland |  | 20850     
| |  | (Address of principal executive offices)           |  | (Zip Code)

(301) 296-5100

(Registrants telephone number, including area code)





Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    Yes   ̈    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act.    Yes   ̈.    No  x.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    Yes   ̈    No  x.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈.

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will
not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    x



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company. See definitions of large accelerated filer, accelerated filer, non-accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check
one):    Large accelerated filer   ̈    Accelerated
filer  x    Non-accelerated filer   ̈    Smaller reporting company   ̈

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).    Yes   ̈    No  x.

Aggregate market value of 2,000,000 shares of registrants common stock held by non-affiliates of the registrant, based on the closing price of a
share of the registrants common stock on April 30, 2010 as reported by NYSE Arca on that date: $211,100,000.









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CURRENCYSHARES® JAPANESE YEN TRUST

INDEX



|           |  |                                                                                                              |   |  |    | 
|---------- |  | ------------------------------------------------------------------------------------------------------------ | - |  | -- | 
|Caption    |  | Page                                                                                                         |  
|PART I     |  |                                                                                                              |   | 
|           |  |                                                                                                             
|Item 1.    |  | Business                                                                                                     |   |  | 1  | 
|           |  |                                                                                                             
|Item 1A.   |  | Risk Factors                                                                                                 |   |  | 3  | 
|           |  |                                                                                                             
|Item 1B.   |  | Unresolved Staff Comments                                                                                    |   |  | 7  | 
|           |  |                                                                                                             
|Item 2.    |  | Properties                                                                                                   |   |  | 7  | 
|           |  |                                                                                                             
|Item 3.    |  | Legal Proceedings                                                                                            |   |  | 7  | 
|           |  |                                                                                                             
|Item 4.    |  | (Removed and Reserved.)                                                                                      |   |  | 7  | 
|           | 
|Part II    |  |                                                                                                              |   | 
|           |  |                                                                                                             
|Item 5.    |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   |  | 8  | 
|           |  |                                                                                                             
|Item 6.    |  | Selected Financial Data                                                                                      |   |  | 9  | 
|           |  |                                                                                                             
|Item 7.    |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                        |   |  | 9  | 
|           |  |                                                                                                             
|Item 7A.   |  | Quantitative and Qualitative Disclosures about Market Risk                                                   |   |  | 13 | 
|           |  |                                                                                                             
|Item 8.    |  | Financial Statements and Supplementary Data                                                                  |   |  | 13 | 
|           |  |                                                                                                             
|Item 9.    |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures                        |   |  | 13 | 
|           |  |                                                                                                             
|Item 9A.   |  | Controls and Procedures                                                                                      |   |  | 13 | 
|           |  |                                                                                                             
|Item 9B.   |  | Other Information                                                                                            |   |  | 14 | 
|           | 
|PART III   |  |                                                                                                              |   | 
|           |  |                                                                                                             
|Item 10.   |  | Directors, Executive Officers and Corporate Governance                                                       |   |  | 14 | 
|           |  |                                                                                                             
|Item 11.   |  | Executive Compensation                                                                                       |   |  | 14 | 
|           |  |                                                                                                             
|Item 12.   |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               |   |  | 14 | 
|           |  |                                                                                                             
|Item 13.   |  | Certain Relationships and Related Transactions, and Director Independence                                    |   |  | 14 | 
|           |  |                                                                                                             
|Item 14.   |  | Principal Accountant Fees and Services                                                                       |   |  | 14 | 
|           | 
|PART IV    |  |                                                                                                              |   | 
|           |  |                                                                                                             
|Item 15.   |  | Exhibits and Financial Statement Schedules                                                                   |   |  | 15 | 
|           | 
|SIGNATURES |  |                                                                                                              |  | 



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PART I



|Item 1. | Business
|------- | --------

Overview

The CurrencyShares® Japanese Yen Trust (the Trust) is a grantor trust that was formed on February 1, 2007. The Shares began trading on the New York Stock Exchange
(NYSE) under the ticker symbol FXY on February 13, 2007. The primary listing of the Shares was transferred to NYSE Arca on October 30, 2007. The Trust issues shares (the Shares) in blocks of 50,000 (a
Basket) in exchange for deposits of Japanese Yen and distributes Japanese Yen in connection with the redemption of Baskets.

The
investment objective of the Trust is for the Shares to reflect the price of Japanese Yen plus accrued interest, if any, less the expenses of the Trusts operations. The Shares are intended to offer investors an opportunity to participate in the
market for the Japanese Yen through an investment in securities. The Shares are intended to provide institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding the Japanese Yen.
The Shares are bought and sold on NYSE Arca like any other exchange-listed security. The Shares are backed by the assets of the Trust, which does not hold or use derivative products. Investing in the Shares does not insulate the investor from
certain risks, including price volatility. The value of the holdings of the Trust is reported on the Trusts website, www.currencyshares.com, each business day.

The Trust

General

The Trust holds Japanese Yen and, from time to time, issues Baskets in exchange for deposits of Japanese Yen and distributes Japanese Yen in connection
with redemptions of Baskets. The Japanese Yen held by the Trust will be sold only if needed to pay Trust expenses, in the event the Trust terminates and liquidates its assets or as otherwise required by law or regulation.

The Sponsor

The Sponsor
of the Trust generally oversees the performance of the Trustee and the Trusts principal service providers, but does not exercise day-to-day oversight over the Trustee or the Trusts service providers. The Sponsor is Rydex Specialized
Products LLC, a Delaware limited liability company.

The Trusts only ordinary recurring expense is the Sponsors fee. The Sponsor
is responsible for payment of the following administrative and marketing expenses of the Trust: the Trustees monthly fee, typical maintenance and transaction fees of the Depository, NYSE listing fees, NYSE Arca listing fees, printing and
mailing costs, audit fees and expenses, up to $100,000 per year in legal fees and expenses, and applicable license fees. The Sponsor also paid the costs of the Trusts organization, including the applicable SEC registration fees. The
Sponsors fee accrues daily at an annual nominal rate of 0.40% of the Japanese Yen in the Trust (including all unpaid interest but excluding unpaid fees, each as accrued through the immediately preceding day). The Sponsor was paid $1,137,346
for the fiscal year ended October 31, 2010.

The Trustee

The Bank of New York Mellon, a banking corporation with trust powers organized under the laws of the State of New York, serves as the Trustee. The Trustee is responsible for the day-to-day administration
of the Trust, including keeping the Trusts operational records.

Net Asset Value

The Trustee calculates, and the Sponsor publishes, the Trusts Net Asset Value (NAV) each business day. To calculate the NAV, the Trustee
adds to the amount of Japanese Yen in the Trust at the end of the preceding day accrued but unpaid interest, if any, Japanese Yen receivable under pending purchase orders and the value of other Trust assets, and subtracts the accrued but unpaid
Sponsors fee, Japanese Yen payable under pending redemption orders and other Trust expenses and liabilities, if any. Prior to November 13, 2008, the NAV was expressed in U.S.



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Dollars (USD) based on the Noon Buying Rate, which is the Japanese Yen/USD exchange rate as determined by the Federal Reserve Bank of New York at 12:00 PM (New York time).
As of November 13, 2008, the NAV is expressed in USD based on the Japanese Yen/USD as determined by WM/Reuters at 4:00 PM (London time) (the Closing Spot Rate) on each day that NYSE Arca is open for regular trading. If, on a
particular evaluation day, the Closing Spot Rate has not been determined and announced by 6:00 PM (London time), then the most recent Closing Spot Rate is used to determine the NAV of the Trust unless the Trustee, in consultation with the Sponsor,
determines that such price is inappropriate to use as the basis for the valuation.

The Trustee also determines the NAV per Share, which
equals the NAV of the Trust divided by the number of outstanding Shares. The NAV of the Trust and NAV per Share is published by the Sponsor on each day that NYSE Arca is open for regular trading and is posted on the Trusts website,
www.currencyshares.com.

Depository and Deposit Accounts

JPMorgan Chase Bank, N.A., London Branch is the Depository. The Depository maintains two deposit accounts for the Trust, a primary deposit account which is expected to earn interest and a secondary
deposit account which does not earn interest (collectively, the Deposit Accounts). Interest on the primary deposit account, if any, accrues daily and is paid monthly. If the Sponsor believes that the interest rate paid by the Depository
is not competitive, the Sponsors recourse is to remove the Depository by terminating the Deposit Account Agreement and closing the Deposit Accounts. The Depository is not paid a fee for its services to the Trust. The Depository may earn a
spread or margin over the rate of interest it pays to the Trust on the Japanese Yen deposit balances.

The secondary
deposit account is used to account for interest received and paid out on creations and redemptions of Baskets. The secondary deposit account is also used to account for interest, if any, earned on the primary deposit account, pay Trust expenses and
distribute any excess interest to Shareholders on a monthly basis. In the event that the interest deposited exceeds the sum of the Sponsors fee for the prior month plus other Trust expenses, if any, then the Trustee will direct that the excess
be converted into USD at a prevailing market rate and the Trustee will distribute the USD as promptly as practicable to Shareholders on a pro rata basis (in accordance with the number of Shares that they own).

Trust Expenses

In
certain exceptional cases the Trust may pay expenses in addition to the Sponsors fee. These exceptions include expenses not assumed by the Sponsor, taxes and governmental charges, expenses and costs of any extraordinary services performed by
the Trustee or the Sponsor on behalf of the Trust or action taken by the Trustee or the Sponsor to protect the Trust or the interests of Shareholders, indemnification of the Sponsor under the Depositary Trust Agreement, and legal expenses in excess
of $100,000 per year.

Termination

The Trust will terminate upon the occurrence of any of the termination events listed in the Depositary Trust Agreement and will otherwise terminate on February 1, 2047.

The Shares

General

Each Share represents a proportional interest, based on the total number of Shares outstanding, in the Japanese Yen owned by the Trust,
plus accrued and unpaid interest, if any, less accrued but unpaid expenses (both asset-based and non-asset based) of the Trust. All Shares are of the same class with equal rights and privileges. Each Share is transferable, fully paid and
non-assessable.

Limited Rights

The Shares are not a traditional investment. They are dissimilar from the shares of a corporation operating a business enterprise, with management and a board of directors. Trust Shareholders do not have
rights normally associated with owning shares of a business corporation, including, for example, the right to bring oppression or derivative actions. Shareholders have only those rights explicitly set forth in the
Depositary Trust Agreement. The Shares do not entitle their holders to any conversion or pre-emptive rights or, except as described herein, any redemption or distribution rights.



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Voting and Approvals

Shareholders have no voting rights under the Depositary Trust Agreement, except in limited circumstances. If the holders of at least 25% of the Shares outstanding determine that the Trustee is in material
breach of its obligations under the Depositary Trust Agreement, they may provide written notice to the Trustee (or require the Sponsor to do so) specifying the default and requiring the Trustee to cure such default. If the Trustee fails to cure the
default within 30 days, the Sponsor may remove the Trustee. The holders of at least 66 2/3% of the Shares outstanding may vote to remove the Trustee. The Trustee must terminate the Trust at the request of the holders of at least 75% of the
outstanding Shares.

Creation and Redemption of Shares

The creation and redemption of Baskets requires the delivery to the Trust or the distribution by the Trust of the amount of Japanese Yen represented by the Baskets being created or redeemed. This amount
is based on the combined NAV per Share of the number of Shares included in the Baskets being created or redeemed, determined on the day the order to create or redeem Baskets is accepted by the Trustee.

Only Authorized Participants may place orders to create and redeem Baskets. An Authorized Participant is a Depository Trust Company participant that is a
registered broker-dealer or other securities market participant, such as a bank or other financial institution that is not required to register as a broker-dealer to engage in securities transactions.

Before initiating a creation or redemption order, an Authorized Participant must have entered into a Participant Agreement with the Sponsor and the
Trustee. The Participant Agreement provides the procedures for the creation and redemption of Baskets and for the delivery of Japanese Yen required for creations and redemptions. The Participant Agreements may be amended by the Trustee and the
Sponsor. Authorized Participants pay a transaction fee of $500 to the Trustee for each order that they place to create or redeem one or more Baskets. Authorized Participants who make deposits with the Trust in exchange for Baskets receive no fees,
commissions or other form of compensation or inducement of any kind from either the Sponsor or the Trust. No Authorized Participant has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares.

Availability Of Sec Reports And Other Information

The Sponsor, on behalf of the Trust, files quarterly and annual reports and other information with the Sec. The reports and other information can be accessed through the Trusts website at
www.currencyshares.com.



|ITEM 1A. | Risk Factors
|-------- | ------------

You should consider
carefully the risks described below before making an investment decision. You should also refer to the other information included in this report, including the Trusts financial statements and the related notes.

The value of the Shares relates directly to the value of the Japanese Yen held by the Trust. Fluctuations in the price of the Japanese Yen could
materially and adversely affect the value of the Shares.

The Shares are designed to reflect the price of the Japanese Yen, plus
accumulated interest, if any, less the Trusts expenses. The price of the Japanese Yen has fluctuated widely over the past several years. Several factors may affect the price of the Japanese Yen, including:



| |  | Debt level and trade deficit of Japan;
|- |  | --------------------------------------



| |  | Inflation rates and interest rates of the United States and Japan and investors expectations concerning these rates;
|- |  | ---------------------------------------------------------------------------------------------------------------------



| |  | Investment and trading activities of mutual funds, hedge funds and currency funds; and
|- |  | --------------------------------------------------------------------------------------



| |  | Global or regional political, economic or financial events and situations.
|- |  | --------------------------------------------------------------------------

In addition, the Japanese Yen may not maintain its long-term value in terms of purchasing power in the future. When the price of the Japanese Yen declines, the Sponsor expects the price of a Share to
decline as well.



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The Japanese Yen/USD exchange rate, like foreign exchange rates in general, can be volatile and difficult
to predict. This volatility could materially and adversely affect the performance of the Shares.

Foreign exchange rates are influenced by
the factors identified immediately above and may also be influenced by: changing supply and demand for a particular currency; monetary policies of governments (including exchange control programs, restrictions on local exchanges or markets and
limitations on foreign investment in a country or on investment by residents of a country in other countries); changes in balances of payments and trade; trade restrictions; and currency devaluations and revaluations. Also, governments from time to
time intervene in the currency markets, directly and by regulation, in order to influence prices directly. These events and actions are unpredictable. The resulting volatility in the Japanese Yen/USD exchange rate could materially and adversely
affect the performance of the Shares.

If the Trustee is required to withdraw Japanese Yen from the Trust to pay expenses, this will reduce
the amount of Japanese Yen represented by each Share on an ongoing basis and may result in adverse tax consequences for Shareholders.

Each outstanding Share represents a fractional, undivided interest in the Japanese Yen held by the Trust. Historically, the amount of interest earned by
the Trust has not exceeded the Trusts expenses; accordingly, the Trustee has been required to withdraw Japanese Yen from the Trust to pay these excess expenses. As long as the amount of interest earned does not exceed expenses, the amount of
Japanese Yen represented by each Share will gradually decline. This is true even if additional Shares are issued in exchange for additional deposits of Japanese Yen into the Trust, as the amount of Japanese Yen required to create Shares will
proportionately reflect the amount of Japanese Yen represented by the Shares outstanding at the time of creation. As long as the Trusts expenses are greater than the amount of interest earned, the Shares will only maintain their original price
if the price of Japanese Yen increases. There is no guarantee that interest earned by the Trust in the future will exceed the Trusts expenses.

Investors should be aware that a gradual decline in the amount of Japanese Yen represented by the Shares may occur regardless of whether the trading price of the Shares rises or falls in response to
changes in the price of Japanese Yen. The estimated ordinary operating expenses of the Trust, which accrue daily, are described in Business  The Trust  Trust Expenses.

The payment of expenses by the Trust will result in a taxable event to Shareholders. To the extent Trust expenses exceed interest paid to the Trust, a gain or loss may be recognized by Shareholders
depending on the tax basis of the tendered Japanese Yen.

The interest rate earned by the Trust, although competitive, may not be the best
rate available. If the Sponsor determines that the interest rate is inadequate, its sole recourse is to remove the Depository and terminate the Deposit Accounts.

The Depository is committed to endeavor to pay a competitive interest rate on the balance of Japanese Yen in the primary deposit account of the Trust. Interest on the primary deposit account, if any,
accrues daily and is paid monthly. The Depository may change the rate at which interest accrues based upon changes in the Bank of Japan Overnight Call Rate, other market conditions or the Depositorys liquidity needs. Although the Depository
may consider the Bank of Japan Overnight Call Rate in setting the interest rate, the rate paid to the Trust may be lower than the Bank of Japan Overnight Call Rate. The Depository notifies the Sponsor of the interest rate applied each business day
after the close of the business day. The Sponsor discloses the current interest rate on the Trusts website. If the Sponsor believes that the interest rate paid by the Depository is not adequate, the Sponsors sole recourse is to remove
the Depository and terminate the Deposit Accounts. The Depository is not paid a fee for its services to the Trust; rather, it generates income or loss based on its ability to earn a spread or margin over the interest it pays
to the Trust by using the Trusts Japanese Yen to make loans or in other banking operations. For these reasons, you should not expect that the Trust will be paid the best available interest rate at any time or over time.

If the Trust incurs expenses in USD, the Trust is required to sell Japanese Yen to pay these expenses. The sale of the Trusts Japanese Yen to
pay expenses in USD at a time of low Japanese Yen prices could adversely affect the value of the Shares.

The Trustee will sell Japanese
Yen held by the Trust to pay any Trust expenses incurred in USD, irrespective of then-current Japanese Yen prices. The Trust is not actively managed and no attempt will be made to buy or sell Japanese Yen to protect against or to take advantage of
fluctuations in the price of Japanese Yen. Consequently, if the Trust incurs expenses in USD the Trusts Japanese Yen may be sold at a time when the Japanese Yen price is low, resulting in a negative effect on the value of the Shares.



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The Deposit Accounts are not entitled to payment at any office of JPMorgan Chase Bank, N.A. located in
the United States.

The federal laws of the United States prohibit banks located in the United States from paying interest on unrestricted
demand deposit accounts. Therefore, payments out of the Deposit Accounts will be payable only at the London branch of JPMorgan Chase Bank, N.A., located in England. The Trustee will not be entitled to demand payment of these accounts at any office
of JPMorgan Chase Bank, N.A. that is located in the United States. JPMorgan Chase Bank, N.A. will not be required to repay the deposit if its London branch cannot repay the deposit due to an act of war, insurrection or civil strife or an action by a
foreign government or instrumentality (whether de jure or de facto) in England.

Shareholders do not have the protections
associated with ownership of a demand deposit account insured in the United States by the Federal Deposit Insurance Corporation nor the protection provided for bank deposits under English law.

Neither the Shares nor the Deposit Accounts and the Japanese Yen deposited in them are a deposit insured against loss by the FDIC, any other federal
agency of the United States or the Financial Services Compensation Scheme of England.

If the Depository becomes insolvent, its assets
might not be adequate to satisfy a claim by the Trust or any Authorized Participant. In addition, in the event of the insolvency of the Depository or the U.S. bank of which it is a branch, there may be a delay and costs incurred in recovering the
Japanese Yen held in the Deposit Accounts.

Japanese Yen deposited in the Deposit Accounts by an Authorized Participant are commingled
with Japanese Yen deposited by other Authorized Participants and are held by the Depository in either the primary deposit account or the secondary deposit account of the Trust. Japanese Yen held in the Deposit Accounts are not segregated from the
Depositorys other assets.

The Trust has no proprietary rights in or to any specific Japanese Yen held by the Depository and will be an
unsecured creditor of the Depository with respect to the Japanese Yen held in the Deposit Accounts in the event of the insolvency of the Depository or the U.S. bank of which it is a branch. In the event the Depository or the U.S. bank of which it is
a branch becomes insolvent, the Depositorys assets might not be adequate to satisfy a claim by the Trust or any Authorized Participant for the amount of Japanese Yen deposited by the Trust or the Authorized Participant and, in such event, the
Trust and any Authorized Participant will generally have no right in or to assets other than those of the Depository.

In the case of
insolvency of the Depository or JPMorgan Chase Bank, N.A., the U.S. bank of which the Depository is a branch, a liquidator may seek to freeze access to the Japanese Yen held in all accounts by the Depository, including the Deposit Accounts. The
Trust and the Authorized Participants could incur expenses and delays in connection with asserting their claims. These problems would be exacerbated by the fact that the Deposit Accounts are not be held in the U.S. but instead held at the London
branch of a U.S. national bank, where they are subject to English insolvency law. Further, under U.S. law, in the case of the insolvency of JPMorgan Chase Bank, N.A., the claims of creditors in respect of accounts (such as the Trusts Deposit
Accounts) that are maintained with an overseas branch of JPMorgan Chase Bank, N.A. will be subordinate to claims of creditors in respect of accounts maintained with JPMorgan Chase Bank, N.A. in the U.S., greatly increasing the risk that the Trust
and the Trusts beneficiaries would suffer a loss.

Shareholders do not have the protections associated with ownership of shares in an
investment company registered under the Investment Company Act.

The Investment Company Act is designed to protect investors by preventing
insiders from managing investment companies to their benefit and to the detriment of public investors; the issuance of securities having inequitable or discriminatory provisions; the management of investment companies by irresponsible persons; the
use of unsound or misleading methods of computing earnings and asset value; changes in the character of investment companies without the consent of investors; and investment companies from engaging in excessive leveraging. To accomplish these ends,
the Investment Company Act requires the safekeeping and proper valuation of fund assets, restricts greatly transactions with affiliates, limits leveraging, and imposes governance requirements as a check on fund management.



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The Trust is not registered as an investment company under the Investment Company Act and is not required to
register under that act. Consequently, Shareholders do not have the regulatory protections afforded to investors in registered investment companies.

Shareholders do not have the rights enjoyed by investors in certain other financial instruments.

As interests in a grantor trust, the Shares have none of the statutory rights normally associated with the ownership of shares of a business corporation, including, for example, the right to bring
oppression or derivative actions. Apart from the rights afforded to them by federal and state securities laws, Shareholders have only those rights relative to the Trust, the Trust property and the Shares that are set forth in
the Depositary Trust Agreement. In this connection, the Shareholders have limited voting and distribution rights. They do not have the right to elect directors. See Business  The Shares  Limited Rights for a description of
the limited rights of the Shareholders.

The Shares may trade at a price which is at, above, or below the NAV per Share.

The NAV per Share fluctuates with changes in the market value of the Trusts assets. The market price of Shares can be expected to fluctuate in
accordance with changes in the NAV per Share, but also in response to market supply and demand. As a result, the Shares might trade at prices at, above or below the NAV per Share.

The Depository owes no fiduciary duties to the Trust or the Shareholders, is not required to act in their best interest and could resign or be removed by the Sponsor, which would trigger early
termination of the Trust.

The Depository is not a trustee for the Trust or the Shareholders. As stated above, the Depository is not
obligated to maximize the interest rate paid to the Trust. In addition, the Depository has no duty to continue to act as the depository of the Trust. The Depository can terminate its role as depository for any reason whatsoever upon 90 days
notice to the Trust. Such a termination might result, for example, if the Sponsor determines that the interest rate paid by the Depository is inadequate. In the event that the Depository was to resign or be removed, the Trust will be terminated.

Shareholders may incur significant fees upon the termination of the Trust.

The occurrence of any one of several events would either require the Trust to terminate or permit the Sponsor to terminate the Trust. For example, if the Depository were to resign or be removed, then the
Sponsor would be required to terminate the Trust. Shareholders tendering their Shares within 90 days of the Trusts termination will receive the amount of Japanese Yen represented by their Shares. Shareholders may incur significant fees if they
choose to convert the Japanese Yen they receive to USD.

Redemption orders are subject to rejection by the Trustee under certain
circumstances.

The Trustee will reject a redemption order if the order is not in proper form as described in the Participant Agreement or
if the fulfillment of the order, in the opinion of its counsel, might be unlawful. Any such rejection could adversely affect a redeeming Shareholder. For example, the resulting delay would adversely affect the value of the Shareholders
redemption distribution if the NAV were to decline during the delay. In accordance with the Depositary Trust Agreement, the Sponsor and the Trustee disclaim any liability for any loss or damage that may result from any such rejection.

Substantial sales of Japanese Yen by the official sector could adversely affect an investment in the Shares.

The official sector consists of central banks, other governmental agencies and multi-lateral institutions that buy, sell and hold Japanese Yen as part of
their reserve assets. The official sector holds a significant amount of Japanese Yen that can be mobilized in the open market. In the event that future economic, political or social conditions or pressures require members of the official sector to
sell their Japanese Yen simultaneously or in an uncoordinated manner, the demand for Japanese Yen might not be sufficient to accommodate the sudden increase in the supply of Japanese Yen to the market. Consequently, the price of the Japanese Yen
could decline, which would adversely affect an investment in the Shares.



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Shareholders that are not Authorized Participants may only purchase or sell their Shares in secondary
trading markets.

Only Authorized Participants may create or redeem Baskets through the Trust. All other investors that desire to purchase
or sell Shares must do so through NYSE Arca or in other markets, if any, in which the Shares are traded.

The liability of the Sponsor and
the Trustee under the Depositary Trust Agreement is limited and, except as set forth in the Depositary Trust Agreement, they are not obligated to prosecute any action, suit or other proceeding in respect of any Trust property.

The Depositary Trust Agreement provides that neither the Sponsor nor the Trustee assumes any obligation or is subject to any liability under the Trust
Agreement to any Shareholder, except that they each agree to perform their respective obligations specifically set forth in the Depositary Trust Agreement without negligence or bad faith. Additionally, neither the Sponsor nor the Trustee is
obligated to, although each may in its respective discretion, prosecute any action, suit or other proceeding in respect of any Trust property. The Depositary Trust Agreement does not confer upon Shareholders the right to prosecute any such action,
suit or other proceeding.

The Depositary Trust Agreement may be amended to the detriment of Shareholders without their consent.

The Sponsor and the Trustee may amend most provisions (other than those addressing core economic rights) of the Depositary Trust
Agreement without the consent of any Shareholder. Such an amendment could impose or increase fees or charges borne by the Shareholders. Any amendment that increases fees or charges (other than taxes and other governmental charges, registration fees
or other expenses), or that otherwise prejudices any substantial existing rights of Shareholders, will not become effective until 30 days after written notice is given to Shareholders.

The License Agreement with The Bank of New York Mellon may be terminated by The Bank of New York Mellon in the event of a material breach. Termination of the License Agreement might lead to early
termination and liquidation of the Trust.

The Bank of New York Mellon (BNY Mellon) and an affiliate of the Sponsor have
entered into a License Agreement granting the Sponsors affiliate a license to certain patent applications made by BNY Mellon covering systems and methods for securitizing a commodity. The Sponsors affiliate has sublicensed the license to
the Sponsor. The license is limited to a non-exclusive grant for the life of BNY Mellons patents and patent applications. The License Agreement provides that each of the parties may provide notice of intent to terminate the License Agreement
in the event the other party commits a material breach. If the License Agreement is terminated and one or more of BNY Mellons patent applications issue as patents, then BNY Mellon may claim that the operation of the Trust violates its patent
or patents and seek an injunction forcing the Trust to cease operation and the Shares to cease trading. In that case, the Trust might be forced to terminate and liquidate, which would adversely affect Shareholders.



|Item 1B. | Unresolved Staff Comments
|-------- | -------------------------

None.



|Item 2. | Properties
|------- | ----------

The principal offices of the
Sponsor and the Trust are at 9601 Blackwell Road, Suite 500, Rockville, Maryland 20850, which is leased by an affiliate of the Sponsor. Neither the Sponsor nor the Trust owns or leases any other property.



|Item 3. | Legal Proceedings
|------- | -----------------

None.



|Item 4. | (Removed and Reserved)
|------- | ----------------------



7



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##### Table of Contents

PART II



|Item 5. | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|------- | ------------------------------------------------------------------------------------------------------------

Following are the high and low sale prices of the Shares as reported by the NYSE Arca for each of the quarters during the fiscal years ended
October 31, 2010 and October 31, 2009:



|                                    |  |      |        |  |     |   |        | 
|----------------------------------- |  | ---- | ------ |  | --- | - | ------ | 
|Fiscal Year Ended October 31, 2010: |  | High |        |  | Low |  
|Quarter Ended                       |  |      |        |  |     |   |        | 
|January 31, 2010                    |  | $    | 114.85 |  |     | $ | 106.47 | 
|April 30, 2010                      |  | $    | 112.20 |  |     | $ | 105.13 | 
|July 31, 2010                       |  | $    | 114.60 |  |     | $ | 104.79 | 
|October 31, 2010                    |  | $    | 122.93 |  |     | $ | 114.50 | 
|                                    |  |     
|Fiscal Year Ended October 31, 2009: |  | High |        |  | Low |  
|Quarter Ended                       |  |      |        |  |     |   |        | 
|January 31, 2009                    |  | $    | 114.10 |  |     | $ | 99.88  | 
|April 30, 2009                      |  | $    | 111.65 |  |     | $ | 98.53  | 
|July 31, 2009                       |  | $    | 107.58 |  |     | $ | 100.29 | 
|October 31, 2009                    |  | $    | 112.29 |  |     | $ | 101.96 | 

The number of record holders of
Shares of the registrant as of November 30, 2010 was approximately 102.

Although the Trust does not purchase Shares directly from its
shareholders, the Trust redeemed Baskets from Authorized Participants in the fourth quarter of the fiscal year covered by this report as follows:



|          |  |         |  |              
|--------- |  | ------- |  | -------------
|Month     |  | Shares  |  | Average Price
|August    |  | 650,000 |  | $115.94      
|September |  | 500,000 |  | $117.94      
|October   |  | 900,000 |  | $121.04      



8



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##### Table of Contents



|Item 6. | Selected Financial Data
|------- | -----------------------

Following are
financial highlights for the fiscal years ended October 31, 2010, October 31, 2009, October 31, 2008 and the period from February 1, 2007 (date of inception) to October 31, 2007.



|                                     |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|------------------------------------ |  | --------------------------------- | ---------- | - | --------------------------------- | - | ---------- | --------------------------------- |  | - | ------------------------------------------------------ | - |  | - | ---------- | -
|                                     |  | Fiscal Year EndedOctober 31, 2010 |            |   | Fiscal Year EndedOctober 31, 2009 |   |            | Fiscal Year EndedOctober 31, 2008 |  |   | February 1, 2007[Date of Inception]to October 31, 2007 |  
|Income                               |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|Interest income                      |  | $                                 |           |   |                                   | $ | 20,400     |                                   |  | $ | 2,267,825                                              |   |  | $ | 978,942    |  
|                                     |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|Total Income                         |  |                                   |           |   |                                   |   | 20,400     |                                   |  |   | 2,267,825                                              |   |  |   | 978,942    |  
|                                     |  |                                   |            |  
|Expenses                             |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|Sponsors fee                        |  |                                   | (1,137,346 | ) |                                   |   | (2,186,949 | )                                 |  |   | (3,866,277                                             | ) |  |   | (1,646,945 | )
|                                     |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|Total Expenses                       |  |                                   | (1,137,346 | ) |                                   |   | (2,186,949 | )                                 |  |   | (3,866,277                                             | ) |  |   | (1,646,945 | )
|Net Loss                             |  | $                                 | (1,137,346 | ) |                                   | $ | (2,166,549 | )                                 |  | $ | (1,598,452                                             | ) |  | $ | (668,003   | )
|                                     |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|                                     |  |                                   |            |  
|Other Comprehensive Loss:            |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|Currency translation adjustment      |  |                                   | (13,894    | ) |                                   |   | (27,049    | )                                 |  |   | (29,686                                                | ) |  |   | (5,484     | )
|                                     |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|Total Comprehensive Loss             |  | $                                 | (1,151,240 | ) |                                   | $ | (2,193,598 | )                                 |  | $ | (1,628,138                                             | ) |  | $ | (673,487   | )
|                                     |  |                                   |            |   |                                   |   |            |                                   |  |   |                                                        |   |  |   |            |  
|                                     |  |                                   |            |  
|Basic and Diluted Earnings per Share |  | $                                 | (0.45      | ) |                                   | $ | (0.42      | )                                 |  | $ | (0.16                                                  | ) |  | $ | (0.10      | )
|Weighted-average Shares Outstanding  |  |                                   | 2,545,205  |   |                                   |   | 5,205,205  |                                   |  |   | 10,243,579                                             |   |  |   | 6,564,469  |  
|Cash Dividends per Share             |  | $                                 |           |   |                                   | $ |           |                                   |  | $ |                                                       |   |  | $ |           |  

As of October 31, 2010, total
assets were $251,886,054, and for the fiscal year ended October 31, 2010, net cash flows were $(183,677,292)



|Item 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

Cautionary Statement Regarding Forward-Looking Information

This report contains
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as anticipate, expect, intend, plan,
believe, seek, outlook and estimate and other similar words. Forward-looking statements are based upon our current expectations and beliefs concerning future developments and their potential effects on
us. Such forward-looking statements are not guarantees of future performance. Various factors may cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include fluctuations in the price
of the Japanese Yen, as the value of the Shares relates directly to the value of the Japanese Yen held by the Trust and price fluctuations could materially adversely affect an investment in the Shares. Readers are urged to review the Risk
Factors section in this report for a description of other risks and uncertainties that may affect an investment in the Shares.

Neither
Rydex Specialized Products LLC d/b/a Rydex Investments (the Sponsor) nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements contained in this report. The forward-looking statements are
made as of the date of this report, and will not be revised or updated to reflect actual results or changes in the Sponsors expectations or predictions.



9



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##### Table of Contents

Movements in the Price of Japanese Yen

The investment objective of the Trust is for the Shares to reflect the price of the Japanese Yen plus accrued interest, less the expenses of the Trusts operations. The Shares are intended to provide
institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding Japanese Yen. Each outstanding Share represents a proportional interest in the Japanese Yen held by the Trust. The
following chart provides recent trends on the price of Japanese Yen. The chart illustrates movements in the price of Japanese Yen in USD and is based on the Noon Buying Rate (prior to November 13, 2008) and the Closing Spot Rate (as of and
after November 13, 2008).

LOGO

Nav per Share; Valuation of the Japanese Yen

The following chart illustrates the movement in the price of the Shares based on (1) NAV per Share, (2) the bid and ask midpoint offered on the NYSE (prior to
October 30, 2007) and NYSE Arca (on or after October 30, 2007) and (3) the Noon Buying Rate (prior to November 13, 2008) and the Closing Spot Rate (as of and after November 13, 2008), expressed as a multiple of 10,000
Japanese Yen.



10



---

##### Table of Contents

LOGO

Liquidity

The Sponsor is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to the Trusts
liquidity needs. The Trusts Depository, JPMorgan Chase Bank, N.A., London Branch, maintains two deposit accounts for the Trust, a primary deposit account that is expected to earn interest and a secondary deposit account that does not earn
interest. Interest on the primary deposit account, if any, accrues daily and is paid monthly. The interest rate in effect as of October 31, 2010 was an annual nominal rate of 0.00%. The following chart provides the daily rate paid by the
Depository since the Shares began trading:

LOGO



11



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##### Table of Contents

In exchange for a fee, the Sponsor bears most of the expense incurred by the Trust. As a result, the only
ordinary expense of the Trust during the periods covered by this report was the Sponsors fee. Each month the Depository deposits into the secondary deposit account accrued but unpaid interest, if any, and the Trustee withdraws Japanese Yen
from the secondary deposit account to pay the accrued Sponsors fee for the previous month plus other Trust expenses, if any. When the interest deposited, if any, exceeds the sum of the Sponsors fee for the prior month plus other Trust
expenses, if any, the Trustee converts the excess into USD at a prevailing market rate and distributes the USD as promptly as practicable to Shareholders on a pro rata basis (in accordance with the number of Shares that they own). To date, the Trust
has not made any distributions.

Critical Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Sponsors management to make estimates and assumptions
that affect the reported amounts of the assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period covered by this report.

In addition to the description below, please refer to Note 2 to the consolidated financial statements for further discussion of our accounting policies.

The functional currency of the Trust is the Japanese Yen in accordance with ASC 830, Foreign Currency Translation.

Results of Operations

As of
October 31, 2009, the number of Japanese Yen owned by the Trust was 36,764,060,906, resulting in a redeemable capital share value of $405,985,408. During the year ended October 31, 2010, an additional 3,950,000 shares were created in
exchange for 39,143,674,136 Japanese Yen and 5,750,000 shares were redeemed in exchange for 56,996,238,776 Japanese Yen. In addition, 108,016,272 Japanese Yen were withdrawn to pay the portion of sponsor fee that exceeded the interest earned. As of
October 31, 2010, the number of Japanese Yen owned by the Trust was 18,803,479,994, resulting in a redeemable capital share value of $233,348,012.

A decrease in the Trusts redeemable capital share value from $405,985,408 at October 31, 2009 to $233,348,012 at October 31, 2010, was primarily the result of a decrease in the number of
Shares outstanding from 3,700,000 at October 31, 2009 to 1,900,000 at October 31, 2010. This decrease in redeemable capital share value was partially offset by an increase in the Closing Spot Rate from .011047 at October 31, 2009 to
..012415 at October 31, 2010.



12



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##### Table of Contents

Interest income decreased from $20,400 for the year ended October 31, 2009 to $0 for the year ended
October 31, 2010, attributable primarily to a decrease in the annual nominal interest rate paid by the Depository as set forth in the chart above.

The Sponsors fee accrues daily at an annual nominal rate of 0.40% of the Japanese Yen in the Trust. Due primarily to a decrease in the weighted-average Japanese Yen in the Trust, the Sponsors
fee decreased from $2,186,949 for the year ended October 31, 2009 to $1,137,346 for the year ended October 31, 2010. The only expense of the Trust during the year ended October 31, 2010 was the Sponsors fee.

The Trusts net loss for the year ended October 31, 2010 was $1,137,346 as a result of the Trusts Sponsors fee of $1,137,346
exceeding the interest income of $0.

Cash dividends were not paid by the Trust in the year ended October 31, 2010 and the year ended
October 31, 2009, as the Trusts interest income did not exceed the Trusts expenses during those periods.



|Item 7A. | Quantitative and Qualitative Disclosures about Market Risk
|-------- | ----------------------------------------------------------

Except as described above with respect to the USD/Japanese Yen exchange rate and the nominal annual interest rate paid by the Depository on Japanese Yen held by the Trust, the Trust is not subject to
market risk. The Trust does not hold securities and does not invest in derivative instruments.



|Item 8. | Financial Statements and Supplementary Data
|------- | -------------------------------------------

See Index to Financial Statements on page F-1 for a list of the financial statements filed with this report.



|Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
|------- | -------------------------------------------------------------------------------------

None.



|Item 9A. | Controls and Procedures
|-------- | -----------------------

Evaluation of
Disclosure Controls and Procedures

The chief executive officer and chief financial officer of the Sponsor have evaluated the effectiveness
of the Trusts disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of October 31, 2010. Based on that evaluation, the
chief executive officer and chief financial officer of the Sponsor have concluded that the disclosure controls and procedures of the Trust were effective as of the end of the period covered by this annual report.

Managements Report on Internal Control over Financial Reporting

The Sponsors management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined under Rules 13a-15(f) and 15d-15(f) of the Exchange Act. The
Trusts internal control over financial reporting is based on criteria established in Internal Control  Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and is designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Internal control over
financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Trusts assets; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the Trusts receipts and expenditures are being made only in
accordance with appropriate authorizations; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Trusts assets that could have a material effect on the
financial statements.



13



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##### Table of Contents

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become ineffective because of changes in conditions, or that the degree of compliance with policies or procedures may
deteriorate.

The chief executive officer and chief financial officer of the Sponsor have assessed the effectiveness of the Trusts
internal control over financial reporting as of October 31, 2010. Their assessment included an evaluation of the design of the Trusts internal control over financial reporting and testing of the operation effectiveness of its internal
controls over financial reporting. Based on their assessment and those criteria, the chief executive officer and chief financial officer of the Sponsor believe that the Trust maintained effective internal control over financial reporting as of
October 31, 2010.

Effectiveness of the Trusts internal control over financial reporting as of October 31, 2010 has been
audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report included herein.

Changes in Internal Control over Financial Reporting

There were no changes in the Trusts internal control over financial reporting that occurred during the Trusts last fiscal quarter that have materially affected, or are reasonably likely to
materially affect, the Trusts internal control over financial reporting.



|Item 9B. | Other Information
|-------- | -----------------

Not applicable.

PART III



|Item 10. | Directors, Executive Officers and Corporate Governance
|-------- | ------------------------------------------------------

Not applicable.



|Item 11. | Executive Compensation
|-------- | ----------------------

Not applicable.



|Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|-------- | ----------------------------------------------------------------------------------------------

None.



|Item 13. | Certain Relationships, Related Transactions, and Director Independence
|-------- | ----------------------------------------------------------------------

Not applicable.



|Item 14. | Principal Accountant Fees and Services
|-------- | --------------------------------------

The following fees were paid by the Sponsor and were for services performed by Ernst & Young LLP for the fiscal year ended October 31, 2010
and PricewaterhouseCoopers LLP for the fiscal year ended October 31, 2009:



|                   |  |      |        |  |      |   |        | 
|------------------ |  | ---- | ------ |  | ---- | - | ------ | 
|                   |  | 2010 |        |  | 2009 |  
|Audit Fees         |  | $    | 25,778 |  |      | $ | 35,889 | 
|Audit-related fees |  |      | 0      |  |      |   | 0      | 
|Tax fees           |  |      | 0      |  |      |   | 0      | 
|All other Fees     |  |      | 0      |  |      |   | 0      | 
|                   |  |      |        |  |      |   |        | 
|                   |  | $    | 25,778 |  |      | $ | 35,889 | 
|                   |  |      |        |  |      |   |        | 



14



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##### Table of Contents

PART IV



|Item 15. | Exhibits and Financial Statement Schedules
|-------- | ------------------------------------------

Financial Statements

See Index to
Financial Statements on Page F-1 for a list of the financial statements being filed as a part of this report. Schedules have been omitted since they are either not required, not applicable or the information has otherwise been included.

Exhibits



|            |  |                                                                                                                                                                                                                     
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                         
|3.1         |  | Certificate of Formation of Rydex Specialized Products LLC, incorporated herein by reference to Exhibit 3.1 filed with Form S-1 Registration Statement (File number 333-132361) filed
on March 13, 2006.            
|            | 
|3.2         |  | Limited Liability Company Agreement of Rydex Specialized Products, LLC, incorporated herein by reference to Exhibit 3.2 filed with Form S-1 Registration Statement (File number
333-132361) filed on March 13, 2006.
|            | 
|4.1         |  | Form of Depositary Trust Agreement, incorporated herein by reference to Exhibit 4.1 filed with Amendment No. 2 to Form S-1 Registration Statement (File number 333-132361) filed on
June 9, 2006.                   
|            | 
|4.2         |  | Form of Participant Agreement, incorporated herein by reference to Exhibit 4.2 filed with Amendment No. 2 to Form S-1 Registration Statement (File number 333-132361) filed on June
9, 2006.                        
|            | 
|10.1        |  | Form of Deposit Account Agreement, incorporated herein by reference to Exhibit 10.1 filed with Amendment No. 2 to Form S-1 Registration Statement (File number 333-132361) filed on
June 9, 2006.                   
|            | 
|10.2        |  | Form of Sublicense Agreement, incorporated herein by reference to Exhibit 10.2 filed with Form S-1 Registration Statement (File number 333-132361) filed on March 13,
2006.                                         
|            | 
|23.1        |  | Consent of Ernst & Young LLP                                                                                                                                                                                        
|            | 
|31.1        |  | Certification by Principal Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.                                                                                                          
|            | 
|31.2        |  | Certification by Principal Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.                                                                                                          
|            | 
|32.1        |  | Certification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                              
|            | 
|32.2        |  | Certification by Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                              



15



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##### Table of Contents

CurrencyShares® Japanese Yen Trust

Financial Statements as of October 31, 2010

Index



|                                                                                                                                                        |  |      |     | 
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                                                                                                        |  | Page |    
|Independent Registered Public Accounting Firm Reports                                                                                                   |  |      | F-2 | 
|                                                                                                                                                        | 
|Statements of Financial Condition at October 31, 2010 and October 31, 2009                                                                              |  |      | F-4 | 
|                                                                                                                                                        | 
|Statements of Income and Comprehensive Income for the year ended October 31, 2010, the year ended October 31, 2009 and the year ended October 
31, 2008 |  |      | F-5 | 
|                                                                                                                                                        | 
|Statements of Changes in Shareholders Equity for the year ended October 31, 2010, the year ended October 
31, 2009 and the year ended October 31, 2008 |  |      | F-6 | 
|                                                                                                                                                        | 
|Statements of Cash Flows for the year ended October 31, 2010, the year ended October 31, 2009 and the year ended October 31,
2008                       |  |      | F-7 | 
|                                                                                                                                                        | 
|Notes to the Financial Statements                                                                                                                       |  |      | F-8 | 



F-1



---

##### Table of Contents

Report of Independent Registered Public Accounting Firm

To the Shareholders of CurrencyShares® Japanese Yen Trust:

We have audited
the accompanying statement of financial condition of CurrencyShares® Japanese Yen Trust (the Trust)
at October 31, 2010 and the related statements of income and comprehensive income, changes in shareholders equity, and cash flows for the year then ended. These financial statements are the responsibility of the Trusts management.
Our responsibility is to express an opinion on these financial statements based on our audit. The statement of financial condition at October 31, 2009, the statement of changes in shareholders equity for the year ended October 31, 2009, the
statements of income and comprehensive income, changes in shareholders equity, and cash flows for each of the years ended October 31, 2009 and 2008 were audited by other auditors whose report, dated January 14, 2010, expressed an
unqualified opinion on those financial statements.

We conducted our audit in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial
statements referred to above present fairly, in all material respects, the financial position of CurrencyShares®
Japanese Yen Trust at October 31, 2010 and the and the results of its operations and its cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
effectiveness of CurrencyShares® Japanese Yen Trusts internal control over financial reporting as of
October 31, 2010, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated January 14, 2011 expressed an unqualified opinion
thereon.

/s/ Ernst & Young LLP

McLean, Virginia

January 14, 2011



F-2



---

##### Table of Contents

Report of Independent Registered Public Accounting Firm

To the Shareholders of CurrencyShares® Japanese Yen Trust:

We have audited
CurrencyShares® Japanese Yen Trusts (the Trust) internal control over financial reporting as
of October 31, 2010, based on criteria established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). CurrencyShares® Japanese Yen Trusts management is responsible for maintaining effective internal control over financial
reporting, and for its assessment of the effectiveness of internal control over financial reporting appearing under Item 9A. Our responsibility is to express an opinion on the Trusts internal control over financial reporting based on our
audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal
control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A companys internal control over
financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A companys internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the
companys assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.

In our opinion, CurrencyShares® Japanese Yen Trust maintained, in all material respects, effective internal control over financial reporting as of
October 31, 2010 based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the statement of financial condition as of October 31, 2010 and the related statements of income and comprehensive income, changes in shareholder equity and cash flows for the year ended October 31,
2010 of CurrencyShares® Japanese Yen Trust and our report dated January 14, 2011 expressed an unqualified
opinion thereon.

/s/ Ernst & Young LLP

McLean, Virginia

January 14, 2011



F-3



---

##### Table of Contents

CurrencyShares® Japanese Yen Trust

Statements of Financial Condition



|                                                                                                                                                                                |  |                  |             |  |                  |   |             | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------- | ----------- |  | ---------------- | - | ----------- | 
|                                                                                                                                                                                |  | October 31, 2010 |             |  | October 31, 2009 |  
|Assets                                                                                                                                                                          |  |                  |             |  |                  |   |             | 
|Current Assets:                                                                                                                                                                 |  |                  |             |  |                  |   |             | 
|Japanese Yen deposits, interest bearing                                                                                                                                         |  | $                | 233,438,609 |  |                  | $ | 417,115,901 | 
|Japanese Yen deposits, non-interest bearing                                                                                                                                     |  |                  |            |  |                  |   |            | 
|Subscriptions Receivable                                                                                                                                                        |  |                  | 18,447,445  |  |                  |   |            | 
|                                                                                                                                                                                |  |                  |             |  |                  |   |             | 
|Total Current Assets                                                                                                                                                            |  | $                | 251,886,054 |  |                  | $ | 417,115,901 | 
|                                                                                                                                                                                |  |                  |             |  |                  |   |             | 
|                                                                                                                                                                                |  |                 
|Liabilities, Redeemable Capital Shares and Shareholders Equity                                                                                                                 |  |                  |             |  |                  |   |             | 
|Current Liabilities:                                                                                                                                                            |  |                  |             |  |                  |   |             | 
|Redemptions payable                                                                                                                                                             |  | $                | 18,447,445  |  |                  | $ | 10,972,939  | 
|Accrued Sponsors fee                                                                                                                                                           |  |                  | 90,597      |  |                  |   | 157,554     | 
|                                                                                                                                                                                |  |                  |             |  |                  |   |             | 
|Total Current Liabilities                                                                                                                                                       |  |                  | 18,538,042  |  |                  |   | 11,130,493  | 
|                                                                                                                                                                                |  |                 
|Commitments and Contingent Liabilities (note 9)                                                                                                                                 |  |                  |            |  |                  |   |            | 
|                                                                                                                                                                                |  |                 
|Redeemable Capital Shares, at redemption value, no par value, 28,870,000 and 23,870,000 authorized, respectively  1,900,000
and 3,700,000 issued and outstanding, respectively |  |                  | 233,348,012 |  |                  |   | 405,985,408 | 
|Shareholders Equity:                                                                                                                                                           |  |                  |             |  |                  |   |             | 
|Retained Earnings                                                                                                                                                               |  |                  |            |  |                  |   |            | 
|Cumulative Translation Adjustment                                                                                                                                               |  |                  |            |  |                  |   |            | 
|                                                                                                                                                                                |  |                  |             |  |                  |   |             | 
|Total Liabilities, Redeemable Capital Shares and Shareholders Equity                                                                                                           |  | $                | 251,886,054 |  |                  | $ | 417,115,901 | 
|                                                                                                                                                                                |  |                  |             |  |                  |   |             | 

See Notes to Financial Statements.



F-4



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##### Table of Contents

CurrencyShares® Japanese Yen Trust

Statements of Income and Comprehensive Income



|                                     |  |                            |            |   |                            |   |            |                            |  |   |            |  
|------------------------------------ |  | -------------------------- | ---------- | - | -------------------------- | - | ---------- | -------------------------- |  | - | ---------- | -
|                                     |  | Year
endedOctober 31, 2010 |            |   | Year
endedOctober 31, 2009 |   |            | Year
endedOctober 31, 2008 | 
|Income                               |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Interest Income                      |  | $                          |           |   |                            | $ | 20,400     |                            |  | $ | 2,267,825  |  
|                                     |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Total Income                         |  |                            |           |   |                            |   | 20,400     |                            |  |   | 2,267,825  |  
|                                     |  |                            |           
|Expenses                             |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Sponsors fee                        |  |                            | (1,137,346 | ) |                            |   | (2,186,949 | )                          |  |   | (3,866,277 | )
|                                     |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Total Expenses                       |  |                            | (1,137,346 | ) |                            |   | (2,186,949 | )                          |  |   | (3,866,277 | )
|Net Loss                             |  | $                          | (1,137,346 | ) |                            | $ | (2,166,549 | )                          |  | $ | (1,598,452 | )
|                                     |  |                            |            |   |                            |   |            |                            |  |   |            |  
|                                     |  |                            |           
|Other Comprehensive Loss:            |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Currency translation adjustment      |  |                            | (13,894    | ) |                            |   | (27,049    | )                          |  |   | (29,686    | )
|                                     |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Total Comprehensive Loss             |  | $                          | (1,151,240 | ) |                            | $ | (2,193,598 | )                          |  | $ | (1,628,138 | )
|                                     |  |                            |            |   |                            |   |            |                            |  |   |            |  
|                                     |  |                            |           
|Basic and Diluted Earnings per share |  | $                          | (0.45      | ) |                            | $ | (0.42      | )                          |  | $ | (0.16      | )
|Weighted-average Shares Outstanding  |  |                            | 2,545,205  |   |                            |   | 5,205,205  |                            |  |   | 10,243,579 |  
|Cash Dividends per Share             |  | $                          |           |   |                            | $ |           |                            |  | $ |           |  

See Notes to
Financial Statements.



F-5



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##### Table of Contents

CurrencyShares® Japanese Yen Trust

Statements of Changes in Shareholders Equity



|                                                            |  |                            |            |   |                            |   |            |                            |  |   |            |  
|----------------------------------------------------------- |  | -------------------------- | ---------- | - | -------------------------- | - | ---------- | -------------------------- |  | - | ---------- | -
|                                                            |  | Year
endedOctober 31, 2010 |            |   | Year
endedOctober 31, 2009 |   |            | Year
endedOctober 31, 2008 | 
|Retained Earnings, Beginning of Year                        |  | $                          |           |   |                            | $ |           |                            |  | $ |           |  
|Net Loss                                                    |  |                            | (1,137,346 | ) |                            |   | (2,166,549 | )                          |  |   | (1,598,452 | )
|Adjustment of redeemable capital shares to redemption value |  |                            | 1,137,346  |   |                            |   | 2,166,549  |                            |  |   | 1,598,452  |  
|                                                            |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Retained Earnings, End of Year                              |  | $                          |           |   |                            | $ |           |                            |  | $ |           |  
|                                                            |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Cumulative Translation Adjustment, Beginning of Year        |  | $                          |           |   |                            | $ |           |                            |  | $ |           |  
|Currency translation adjustment                             |  |                            | (13,894    | ) |                            |   | (27,049    | )                          |  |   | (29,686    | )
|Adjustment of redeemable capital shares to redemption value |  |                            | 13,894     |   |                            |   | 27,049     |                            |  |   | 29,686     |  
|                                                            |  |                            |            |   |                            |   |            |                            |  |   |            |  
|Cumulative Translation Adjustment, End of Year              |  | $                          |           |   |                            | $ |           |                            |  | $ |           |  
|                                                            |  |                            |            |   |                            |   |            |                            |  |   |            |  

See Notes to Financial Statements.



F-6



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##### Table of Contents

CurrencyShares® Japanese Yen Trust

Statements of Cash Flows



|                                                                            |  |                            |              |   |                            |   |              |                            |  |   |              |  
|--------------------------------------------------------------------------- |  | -------------------------- | ------------ | - | -------------------------- | - | ------------ | -------------------------- |  | - | ------------ | -
|                                                                            |  | Year endedOctober 31,
2010 |              |   | Year
endedOctober 31, 2009 |   |              | Year
endedOctober 31, 2008 | 
|Cash flows from operating activities                                        |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Cash received for accrued income                                            |  | $                          |             |   |                            | $ | 209,519      |                            |  | $ | 2,294,074    |  
|Cash paid for expenses                                                      |  |                            | (1,215,142   | ) |                            |   | (2,362,293   | )                          |  |   | (3,903,294   | )
|                                                                            |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Net cash used in operating activities                                       |  |                            | (1,215,142   | ) |                            |   | (2,152,774   | )                          |  |   | (1,609,220   | )
|                                                                            |  |                            |             
|Cash flows from financing activities                                        |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Cash received to purchase redeemable shares                                 |  |                            | 423,635,140  |   |                            |   | 237,276,106  |                            |  |   | 530,322,592  |  
|Cash paid to redeem redeemable shares                                       |  |                            | (635,643,603 | ) |                            |   | (659,268,709 | )                          |  |   | (778,816,105 | )
|                                                                            |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Net cash used in financing activities                                       |  |                            | (212,008,463 | ) |                            |   | (421,992,603 | )                          |  |   | (248,493,513 | )
|                                                                            |  |                            |             
|Adjustment to period cash flows due to currency movement                    |  |                            | 29,546,313   |   |                            |   | 49,721,384   |                            |  |   | 136,009,952  |  
|                                                                            |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Decrease in cash                                                            |  |                            | (183,677,292 | ) |                            |   | (374,423,993 | )                          |  |   | (114,092,781 | )
|Cash at beginning of year                                                   |  |                            | 417,115,901  |   |                            |   | 791,539,894  |                            |  |   | 905,632,675  |  
|                                                                            |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Cash at end of year                                                         |  | $                          | 233,438,609  |   |                            | $ | 417,115,901  |                            |  | $ | 791,539,894  |  
|                                                                            |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Reconciliation of net loss to net cash used in operating activities         |  |                            |              |   |                            |   |              |                            |  |   |              |  
|                                                                            |  |                            |             
|Net loss                                                                    |  | $                          | (1,137,346   | ) |                            | $ | (2,166,549   | )                          |  | $ | (1,598,452   | )
|Adjustments to reconcile net loss to net cash used in operating activities: |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Receivable from accrued interest                                            |  |                            |             |   |                            |   |             |                            |  |   | (181,950     | )
|Prior period receivable from accrued interest                               |  |                            |             |   |                            |   | 181,950      |                            |  |   | 180,985      |  
|Currency translation adjustment                                             |  |                            | (10,839      | ) |                            |   | (9,451       | )                          |  |   | (20,808      | )
|Accrued sponsor fee                                                         |  |                            | 90,597       |   |                            |   | 157,554      |                            |  |   | 316,278      |  
|Prior period accrued sponsor fee                                            |  |                            | (157,554     | ) |                            |   | (316,278     | )                          |  |   | (305,273     | )
|                                                                            |  |                            |              |   |                            |   |              |                            |  |   |              |  
|Net cash used in by operating activities                                    |  | $                          | (1,215,142   | ) |                            | $ | (2,152,774   | )                          |  | $ | (1,609,220   | )
|                                                                            |  |                            |              |   |                            |   |              |                            |  |   |              |  

See Notes to Financial Statements.



F-7



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##### Table of Contents

CurrencyShares® Japanese Yen Trust

Notes to Financial Statements



|1. | Organization and Description of the Trust
|-- | -----------------------------------------

The CurrencyShares®Japanese Yen Trust (the Trust) was formed under the laws
of the State of New York on February 1, 2007 when Rydex Specialized Products LLC d/b/a Rydex Investments (the Sponsor) deposited 10,000 Japanese Yen in the Trusts primary deposit account held by JPMorgan Chase
Bank, N.A., London Branch (the Depository). The Sponsor is a Delaware limited liability company whose sole member is Rydex Advisors II, LLC (also d/b/a Rydex Investments). The Sponsor is responsible for, among other things,
overseeing the performance of The Bank of New York Mellon (the Trustee) and the Trusts principal service providers, including the preparation of financial statements. The Trustee is responsible for the day-to-day administration of
the Trust.

The investment objective of the Trust is for the Trusts shares (the Shares) to reflect the price of the Japanese
Yen plus accrued interest less the Trusts expenses and liabilities. The Shares are intended to provide investors with a simple, cost-effective means of gaining investment benefits similar to those of holding Japanese Yen. The Trusts
assets primarily consist of Japanese Yen on demand deposit in two deposit accounts maintained by the Depository: a primary deposit account which may earn interest and a secondary deposit account which does not earn interest. The secondary deposit
account is used to account for any interest that may be received and paid out on creations and redemptions of blocks of 50,000 Shares (Baskets). The secondary account is also used to account for interest earned, if any, on the primary
deposit account, pay Trust expenses and distribute any excess interest to holders of Shares (Shareholders) on a monthly basis.

The accompanying audited financial statements were prepared in accordance with accounting principles generally accepted in the United States of America.



|2. | Significant Accounting Policies
|-- | -------------------------------



| | A. | Use of Estimates
| | -- | ----------------

The preparation of
financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of the assets, liabilities and disclosures of
contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period and the evaluation of subsequent events through the issuance date of the financial statements. Actual results could
differ from those estimates.



| | B. | Foreign Currency Translation
| | -- | ----------------------------

The Trustee
calculates the Trusts net asset value (NAV) each business day, as described in Note 4. Prior to November 13, 2008, Japanese Yen deposits (cash) were translated for NAV calculation purposes at the Noon Buying Rate, which was
the U.S. Dollar (USD)/Japanese Yen exchange rate as determined and published by the Federal Reserve Bank of New York. As of November 13, 2008, Japanese Yen deposits (cash) are translated for NAV calculation purposes at the
Closing Spot Rate, which is the USD/Japanese Yen exchange rate as determined by WM/Reuters at 4:00 PM (London time) on each day that NYSE Arca is open for regular trading.



F-8



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##### Table of Contents

The functional currency of the Trust is the Japanese Yen in accordance with generally accepted accounting
standards. For financial statement reporting purposes, the U.S. Dollar is the reporting currency. As a result, the financial records of the Trust are translated from Japanese Yen to USD. The Closing Spot Rate on the last day of the period is
used for translation in the statements of financial condition. The average Closing Spot Rate for the period is used for translation in the statement of income and comprehensive income and the statement of cash flows. Any currency translation
adjustment is included in comprehensive income.



| | C. | Federal Income Taxes
| | -- | --------------------

The Trust is
treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. Interest, gains and losses are passed through to the Shareholders.

Shareholders generally will be treated, for U.S. federal income tax purposes, as if they directly owned a pro-rata share of the assets held in the Trust.
Shareholders also will be treated as if they directly received their respective pro-rata portion of the Trusts income, if any, and as if they directly incurred their respective pro-rata portion of the Trusts expenses. The acquisition of
Shares by a U.S. Shareholder as part of a creation of a Basket will not be a taxable event to the Shareholder.

The Sponsors fee accrues
daily and is payable monthly. For U.S. federal income tax purposes, an accrual-basis U.S. Shareholder generally will be required to take into account as an expense its allocable portion of the USD-equivalent of the amount of the Sponsors fee
that is accrued on each day, with such USD-equivalent being determined by the currency exchange rate that is in effect on the respective day. To the extent that the currency exchange rate on the date of payment of the accrued amount of the
Sponsors fee differs from the currency exchange rate in effect on the day of accrual, the U.S. Shareholder will recognize a currency gain or loss for U.S. federal income tax purposes.

The Trust does not expect to generate taxable income except for interest income (if any) and gain (if any) upon the sale of Japanese Yen. A non-U.S. Shareholder generally will not be subject to U.S.
federal income tax with respect to gain recognized upon the sale or other disposition of Shares, or upon the sale of Japanese Yen by the Trust, unless: (1) the non-U.S. Shareholder is an individual and is present in the United States for 183
days or more during the taxable year of the sale or other disposition, and the gain is treated as being from United States sources; or (2) the gain is effectively connected with the conduct by the non-U.S. Shareholder of a trade or business in
the United States.

A non-U.S. Shareholders portion of any interest income earned by the Trust generally will not be subject to U.S.
federal income tax unless the Shares owned by such non-U.S. Shareholder are effectively connected with the conduct by the non-U.S. Shareholder of a trade or business in the United States.



| | D. | Revenue Recognition
| | -- | -------------------

Interest on the
primary deposit account, if any, accrues daily as earned and is received on a monthly basis.



| | E. | Dividends
| | -- | ---------

To the extent that the
interest earned by the Trust exceeds the sum of the Sponsors fee for the prior month plus other Trust expenses, if any, the Trust will distribute, as a dividend (herein referred to as dividends or distributions), the excess interest earned in
Japanese Yen effective on the first business day of the subsequent month. The Trustee will direct that the excess Japanese Yen be converted into USD at the prevailing market rate and the Trustee will distribute the USD as promptly as practicable to
Shareholders on a pro-rata basis (in accordance with the number of Shares that they own).



F-9



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##### Table of Contents



|3. | Japanese Yen Deposits
|-- | ---------------------

Japanese Yen
principal deposits are held in a Japanese Yen -denominated, interest-bearing demand account. The interest rate in effect as of October 31, 2010 was an annual nominal rate of 0.00%. For the year ended October 31, 2010, there were Japanese
Yen principal deposits of 39,143,674,136, Japanese Yen principal redemptions of 56,996,238,776 and Japanese Yen withdrawals (to pay expenses) of 108,016,272 resulting in an ending Japanese Yen principal balance of 18,803,479,994. This equates to
233,438,609 USD (which is net of USD subscriptions receivable and USD redemptions payable). For the year ending October 31, 2009, there were Japanese Yen principal deposits of 22,396,562,822, Japanese Yen principal redemptions of 55,244,283,718
and Japanese Yen withdrawals (to pay expenses) of 203,200,952 resulting in an ending Japanese Yen principal balance of 36,764,060,906. This equates to 406,142,962 USD (which is net of USD redemptions payable). For the year ending October 31,
2008, there were Japanese Yen principal deposits of 56,402,589,706, Japanese Yen principal redemptions of 90,808,736,402, and Japanese Yen withdrawals (to pay expenses) of 171,148,942 resulting in an ending Japanese Yen principal balance of
69,814,982,754. This equates to 710,368,160 USD (which is net of USD redemptions payable).

Net interest, if any, associated with creation and
redemption activity is held in a Japanese Yen-denominated non-interest-bearing account, and any balance is distributed in full as part of the monthly income distributions, if any.



|4. | Redeemable Capital Shares
|-- | -------------------------

Shares are
classified as redeemable for financial statement purposes, since they are subject to redemption. Shares are issued and redeemed continuously in Baskets in exchange for Japanese Yen. Individual investors cannot purchase or redeem Shares
in direct transactions with the Trust. Only Authorized Participants (as defined below) may place orders to create and redeem Baskets. An Authorized Participant is a Depository Trust Company (DTC) participant that is a registered
broker-dealer or other institution eligible to settle securities transactions through the book-entry facilities of DTC and which has entered into a contractual arrangement with the Trust and the Sponsor governing, among other matters, the creation
and redemption process. Authorized Participants may redeem their Shares at any time in Baskets.

Due to expected continuing creations and
redemptions of Baskets and the three-day period for settlement of each creation or redemption, the Trust reflects Shares created as a receivable. Shares redeemed are reflected as a liability on the trade date. Outstanding Shares are reflected at a
redemption value, which is the NAV per Share at the period end date. Adjustments to redeemable capital shares at redemption value are recorded against retained earnings, or, in the absence of retained earnings, by charges against the cumulative
translation adjustment.



F-10



---

##### Table of Contents

Activity in redeemable capital Shares is as follows:



|                                                               |  |                            |            |   |                            |   |              |                            |  |  |                   |   |  |        |              |   |                   |  |            |   |  |   |              |  
|-------------------------------------------------------------- |  | -------------------------- | ---------- | - | -------------------------- | - | ------------ | -------------------------- |  |  | ----------------- | - |  | ------ | ------------ | - | ----------------- |  | ---------- | - |  | - | ------------ | -
|                                                               |  | Year endedOctober 31,
2010 |            |   | Year endedOctober 31,
2009 |   |              | Year endedOctober 31,
2008 | 
|                                                               |  | Shares                     |            |   | U.S. DollarAmount          |   |              | Shares                     |  |  | U.S. DollarAmount |   |  | Shares |              |   | U.S. DollarAmount | 
|Opening balance                                                |  |                            | 3,700,000  |   |                            | $ | 405,985,408  |                            |  |  | 7,000,000         |   |  | $      | 710,233,832  |   |                   |  | 10,450,000 |   |  | $ | 905,508,387  |  
|Shares issued                                                  |  |                            | 3,950,000  |   |                            |   | 440,351,417  |                            |  |  | 2,250,000         |   |  |        | 237,276,106  |   |                   |  | 5,650,000  |   |  |   | 530,322,592  |  
|Shares redeemed                                                |  |                            | (5,750,000 | ) |                            |   | (641,185,966 | )                          |  |  | (5,550,000        | ) |  |        | (585,275,009 | ) |                   |  | (9,100,00  | ) |  |   | (853,824,704 | )
|Adjustment to period Shares due to currency movement and other |  |                            |           |   |                            |   | 28,197,153   |                            |  |  |                  |   |  |        | 43,750,479   |   |                   |  |           |   |  |   | 128,227,557  |  
|                                                               |  |                            |            |   |                            |   |              |                            |  |  |                   |   |  |        |              |   |                   |  |            |   |  |   |              |  
|Ending balance                                                 |  |                            | 1,900,000  |   |                            | $ | 233,348,012  |                            |  |  | 3,700,000         |   |  | $      | 405,985,408  |   |                   |  | 7,000,000  |   |  | $ | 710,233,832  |  
|                                                               |  |                            |            |   |                            |   |              |                            |  |  |                   |   |  |        |              |   |                   |  |            |   |  |   |              |  

The Trustee calculates the Trusts NAV each business day. To calculate the NAV, the Trustee subtracts the
Sponsors accrued fee through the previous day from the Japanese Yen held by the Trust (including all unpaid interest accrued, if any, through the preceding day) and calculates the value of the Japanese Yen in USD based upon the Closing Spot
Rate. If, on a particular evaluation day, the Closing Spot Rate has not been determined and announced by 6:00 PM (London time), then the most recent Closing Spot Rate will be used to determine the NAV of the Trust unless the Trustee, in consultation
with the Sponsor, determines that such price is inappropriate to use as the basis for the valuation. If the Trustee and the Sponsor determine that the most recent Closing Spot Rate is not an appropriate basis for valuation of the Trusts
Japanese Yen, they will determine an alternative basis for the valuation. The Trustee also determines the NAV per Share, which equals the NAV of the Trust divided by the number of outstanding Shares. Shares deliverable under a purchase order are
considered outstanding for purposes of determining NAV per Share; Shares deliverable under a redemption order are not considered outstanding for this purpose.



F-11



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##### Table of Contents



|5. | Selected Quarterly Information (Unaudited)
|-- | ------------------------------------------

Fiscal Period Ended October 31, 2010:



|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|------------------------------------ |  | ---------------------------------- | --------- | - | ------------------------------ | - | --------- | -------------------------------- |  | - | --------------------------------- | - |  | - | --------- | -
|                                     |  | Three monthsendedOctober 
31, 2010 |           |   | Three monthsendedJuly 31,
2010 |   |           | Three monthsendedApril 
30, 2010 |  |   | Three
monthsendedJanuary 31, 2010 |  
|Income                               |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Interest income                      |  | $                                  |          |   |                                | $ |          |                                  |  | $ |                                  |   |  | $ |          |  
|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Total Income                         |  |                                    |          |   |                                |   |          |                                  |  |   |                                  |   |  |   |          |  
|                                     |  |                                    |           |  
|Expenses                             |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Sponsors fee                        |  |                                    | (286,450  | ) |                                |   | (255,978  | )                                |  |   | (233,597                          | ) |  |   | (361,321  | )
|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Total Expenses                       |  |                                    | (286,450  | ) |                                |   | (255,978  | )                                |  |   | (233,597                          | ) |  |   | (361,321  | )
|Net Loss                             |  | $                                  | (286,450  | ) |                                | $ | (255,978  | )                                |  | $ | (233,597                          | ) |  | $ | (361,321  | )
|Other Comprehensive (Loss)/Income:   |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Currency translation adjustment      |  |                                    | (11,827   | ) |                                |   | (9,950    | )                                |  |   | 6,188                             |   |  |   | 1,695     |  
|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Total Comprehensive Loss             |  | $                                  | (298,277  | ) |                                | $ | (265,928  | )                                |  | $ | (227,409                          | ) |  | $ | (359,626  | )
|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Basic and Diluted Earnings per Share |  | $                                  | (0.12     | ) |                                | $ | (0.11     | )                                |  | $ | (0.11                             | ) |  | $ | (0.11     | )
|Weighted-average Shares Outstanding  |  |                                    | 2,399,457 |   |                                |   | 2,324,457 |                                  |  |   | 2,209,551                         |   |  |   | 3,236,413 |  
|Cash Dividends per Share             |  | $                                  |          |   |                                | $ |          |                                  |  | $ |                                  |   |  | $ |          |  

Fiscal Period Ended October 31,
2009:



|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|------------------------------------ |  | ---------------------------------- | --------- | - | ------------------------------ | - | --------- | -------------------------------- |  | - | --------------------------------- | - |  | - | --------- | -
|                                     |  | Three monthsendedOctober 
31, 2009 |           |   | Three monthsendedJuly 31,
2009 |   |           | Three monthsendedApril 
30, 2009 |  |   | Three
monthsendedJanuary 31, 2009 |  
|Income                               |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Interest income                      |  | $                                  |          |   |                                | $ |          |                                  |  | $ |                                  |   |  | $ | 20,400    |  
|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Total Income                         |  |                                    |          |   |                                |   |          |                                  |  |   |                                  |   |  |   | 20,400    |  
|                                     |  |                                    |           |  
|Expenses                             |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Sponsors fee                        |  |                                    | (523,113  | ) |                                |   | (521,257  | )                                |  |   | (480,563                          | ) |  |   | (662,016  | )
|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Total Expenses                       |  |                                    | (523,113  | ) |                                |   | (521,257  | )                                |  |   | (480,563                          | ) |  |   | (662,016  | )
|Net Loss                             |  | $                                  | (523,113  | ) |                                | $ | (521,257  | )                                |  | $ | (480,563                          | ) |  | $ | (641,616  | )
|Other Comprehensive (Loss)/Income:   |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Currency translation adjustment      |  |                                    | (9,811    | ) |                                |   | (4,023    | )                                |  |   | 8,621                             |   |  |   | (21,836   | )
|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Total Comprehensive Loss             |  | $                                  | (532,924  | ) |                                | $ | (525,280  | )                                |  | $ | (471,942                          | ) |  | $ | (663,452  | )
|                                     |  |                                    |           |   |                                |   |           |                                  |  |   |                                   |   |  |   |           |  
|Basic and Diluted Earnings per Share |  | $                                  | (0.11     | ) |                                | $ | (0.10     | )                                |  | $ | (0.10                             | ) |  | $ | (0.10     | )
|Weighted-average Shares Outstanding  |  |                                    | 4,791,848 |   |                                |   | 5,003,261 |                                  |  |   | 4,757,865                         |   |  |   | 6,253,261 |  
|Cash Dividends per Share             |  | $                                  |          |   |                                | $ |          |                                  |  | $ |                                  |   |  | $ |          |  



F-12



---

##### Table of Contents



|6. | Sponsors Fee
|-- | -------------

The Sponsors
fee accrues daily at an annual nominal rate of 0.40% of the Japanese Yen in the Trust (including all unpaid interest but excluding unpaid fees, each as accrued through the immediately preceding day) and is paid monthly.

The Sponsor assumes and pays the following administrative and marketing expenses incurred by the Trust: the Trustees monthly fee, NYSE Arca listing
fees, SEC registration fees, typical maintenance and transaction fees of the Depository, printing and mailing costs, audit fees and expenses, up to $100,000 per year in legal fees and expenses, and applicable license fees.

In certain exceptional cases the Trust will pay for some expenses in addition to the Sponsors fee. These exceptions include expenses not assumed by
the Sponsor (i.e., expenses other than those identified in the preceding paragraph), taxes and governmental charges, expenses and costs of any extraordinary services performed by the Trustee or the Sponsor on behalf of the Trust or action taken by
the Trustee or the Sponsor to protect the Trust or the interests of Shareholders, indemnification of the Sponsor under the Depositary Trust Agreement, and legal expenses in excess of $100,000 per year.



|7. | Related Parties
|-- | ---------------

The Sponsor is a related
party of the Trust. The Sponsor oversees the performance of the Trustee and the Trusts principal service providers, including the preparation of financial statements, but does not exercise day-to-day oversight over the Trustee or the
Trusts service providers.



|8. | Concentration Risk
|-- | ------------------

All of the
Trusts assets are Japanese Yen, which creates a concentration risk associated with fluctuations in the price of the Japanese Yen. Accordingly, a decline in the Japanese Yen to USD exchange rate will have an adverse effect on the value of the
Shares. Factors that may have the effect of causing a decline in the price of the Japanese Yen include national debt levels and trade deficits, domestic and foreign inflation rates, domestic and foreign interest rates, investment and trading
activities of institutions and global or regional political, economic or financial events and situations. Substantial sales of Japanese Yen by the official sector (central banks, other governmental agencies and related institutions that buy, sell
and hold Japanese Yen as part of their reserve assets) could adversely affect an investment in the Shares.

All of the Trusts Japanese
Yen are held by the Depository. Accordingly, a risk associated with the concentration of the Trusts assets in accounts held by a single financial institution exists and increases the potential for loss by the Trust and the Trusts
beneficiaries in the event that the Depository becomes insolvent.



|9. | Commitments and Contingencies
|-- | -----------------------------

Under the
Trusts organizational documents, the Sponsor is indemnified against any liability or expense it incurs without negligence, bad faith or willful misconduct on its part. The Trusts maximum exposure under this arrangement is unknown, as
this would involve future claims that may be made against the Trust that have not yet occurred.



F-13



---

##### Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of Rockville, State of Maryland, on January 14, 2011.



CURRENCYSHARES® JAPANESE YEN
TRUSTBy

Rydex Specialized Products LLC Sponsor of the CurrencyShares® Japanese 
Yen TrustBy:

/S/ NICK BONOSNick BonosChief Executive Officer


Pursuant to
the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities* and on the dates indicated.



|                                |  |                                                                                                     |  |                 
|------------------------------- |  | --------------------------------------------------------------------------------------------------- |  | ----------------
|Signature                       |  | Capacity                                                                                            |  | Date            
|                                |  |                                                                                                    
|/s/ NICK BONOS                  |  | Director and Chief Executive Officer (principal executive officer)                                  |  | January 14, 2011
|Nick Bonos                      |  |                                                                                                    
|                                |  |                                                                                                    
|/s/ JOSEPH ARRUDA
Joseph Arruda |  | Director and Chief Financial Officer (principal financial officer and principal accounting officer) |  | January 14, 2011
|                                | 
|                                |  |                                                                                                    
|/s/ MICHAEL BYRUM
Michael Byrum |  | Director                                                                                            |  | January 14, 2011
|                                | 



|* | The registrant is a trust and the persons are signing in their capacities as officers or directors of Rydex Specialized Products LLC, the Sponsor of the registrant.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------