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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549





FORM 10-K





x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended October 31, 2008

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





CurrencySharesSMJapanese 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 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 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  x    Accelerated filer   ̈    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 10,550,000 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, 2008 as reported by NYSE Arca on that date: $1,012,272,500.









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Cautionary Statement Regarding Forward-Looking Information

This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and within the Private Securities Litigation Reform Act of 1995. These statements are predictions and actual events or results may differ materially from those expressed in our
forward-looking statements. Risks and uncertainties may cause our actual results to differ materially from those expressed in our forward-looking statements.

The value of the Shares relates directly to the value of the Japanese Yen held by the Trust and fluctuations in the price of the Japanese Yen could materially adversely affect an investment in the Shares. Readers are urged to review the
Risk Factors section beginning on page 3 for a description of other risks and uncertainties that may affect an investment in the Shares.

The
discussion and analysis which follows may contain statement that relate to future events or future performance. In some cases, such forward-looking statements can be identified by terminology such as anticipate, expect,
intend, plan, believe, seek, outlook and estimate as well as similar words and phrases that signify forward-looking statements. Neither the Sponsor nor any other person assumes
responsibility for the accuracy or completeness of forward-looking statements. Further, these 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.



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CURRENCYSHARESSMJAPANESE YEN TRUST

INDEX



|         |  |                                                                                                               |  |     
|-------- |  | ------------------------------------------------------------------------------------------------------------- |  | ----
|Caption  |  |                                                                                                               |  | Page
|PART I   |  |                                                                                                              
|         |  |                                                                                                              
|Item 1.  |  | Business.                                                                                                     |  | 1   
|         |  |                                                                                                              
|Item 1A. |  | Risk Factors.                                                                                                 |  | 3   
|         |  |                                                                                                              
|Item 1B. |  | Unresolved Staff Comments.                                                                                    |  | 8   
|         |  |                                                                                                              
|Item 2.  |  | Properties.                                                                                                   |  | 8   
|         |  |                                                                                                              
|Item 3.  |  | Legal Proceedings.                                                                                            |  | 8   
|         |  |                                                                                                              
|Item 4.  |  | Submission of Matters to a Vote of Security Holders.                                                          |  | 8   
|         | 
|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.                                                   |  | 12  
|         |  |                                                                                                              
|Item 8.  |  | Financial Statements and Supplementary Data.                                                                  |  | 12  
|         |  |                                                                                                              
|Item 9.  |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures.                        |  | 12  
|         |  |                                                                                                              
|Item 9A. |  | Controls and Procedures.                                                                                      |  | 12  
|         |  |                                                                                                              
|Item 9B. |  | Other Information.                                                                                            |  | 13  
|         | 
|PART III |  |                                                                                                              
|         |  |                                                                                                              
|Item 10. |  | Directors and Executive Officers of the Registrant.                                                           |  | 13  
|         |  |                                                                                                              
|Item 11. |  | Executive Compensation.                                                                                       |  | 13  
|         |  |                                                                                                              
|Item 12. |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.               |  | 13  
|         |  |                                                                                                              
|Item 13. |  | Certain Relationships and Related Transactions, Director Independence.                                        |  | 13  
|         |  |                                                                                                              
|Item 14. |  | Principal Accountant Fees and Services.                                                                       |  | 13  
|         | 
|PART IV  |  |                                                                                                              
|         |  |                                                                                                              
|Item 15. |  | Exhibits and Financial Statement Schedules.                                                                   |  | 14  



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|Item 1. | BUSINESS
|------- | --------

OVERVIEW

The CurrencySharesSMJapanese Yen Trust (the Trust) is a grantor trust that was formed on February 1, 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 Shares trade on NYSE Arca under the ticker symbol FXY.

The
investment objective of the Trust is for the Shares to reflect the price of Japanese Yen plus accrued interest, 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. The value of the holdings of the Trust is reported on the Trusts
website, www.currencyshares.com, every 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 (1) if needed to pay Trust expenses, (2) in the event the Trust terminates and liquidates its assets or
(3) 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 annum in legal fees and expenses, and applicable license fees. The Sponsor also paid the costs of the Trusts organization and the costs of the initial sale
of the Shares, 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. The Sponsor was paid $3,866,277 for the year ended October 31, 2008.

The Trustee

The Bank of New York, 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, 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. 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 such valuation.



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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 earns interest and a secondary deposit account which does not earn interest (collectively, the Deposit
Accounts). Interest on the primary deposit account 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 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 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 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 provided 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 such breach within 30 days after receipt of the notice, the Sponsor may remove the Trustee. The holders of at least 662/3% 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 and has entered into a Participant Agreement with the
Trustee.

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.



|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, 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 of the United States and Japan and investors expectations concerning inflation rates;
|- |  | ------------------------------------------------------------------------------------------------------



| |  | Interest rates of the United States and Japan and investors expectations concerning interest 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.

Historically, the interest earned by the Trust has not exceeded the Trusts expenses. Accordingly, the Trustee must withdraw Japanese
Yen from the Trust to pay these excess expenses which reduces the amount of Japanese Yen represented by each Share on an ongoing basis and may result in adverse tax consequences. There is no guarantee that interest earned by the Trust in the future
will exceed the Trusts expenses.

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. Assuming a constant Japanese Yen price, as long as expenses exceed interest earned, the
trading price of the Shares will gradually decline relative to the price of Japanese Yen as the amount of Japanese Yen represented by the Shares gradually declines. In this event, 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.

If the Trust incurs expenses in USD, the Trust would be 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.

Purchasing activity in the Japanese Yen market associated with the purchase of Baskets from the Trust may cause a temporary increase in the price of Japanese Yen.
This increase may adversely affect an investment in the Shares.

Purchasing activity associated with acquiring the Japanese Yen required for deposit
into the Trust in connection with the creation of Baskets may temporarily increase the market price of Japanese Yen, which will result in higher prices for the Shares. Temporary increases in the market price of Japanese Yen may also occur as a
result of the purchasing activity of other market participants. Other market participants may attempt to benefit from an increase in the market price of Japanese Yen that may result from increased purchasing activity of Japanese Yen connected with
the issuance of Baskets. Consequently, the market price of Japanese Yen may decline immediately after Baskets are created. If the price of Japanese Yen declines, then it is anticipated that the trading price of the Shares will also decline. In
addition, if the Trust experiences a significant increase in its expenses due to an unexpected event, then it is anticipated that the unexpected expenses would reduce the NAV of the Trust, which would cause the trading price of the Shares to decline
even if the price of Japanese Yen did not decline.



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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 full 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 or any other federal agency. Deposits may have only limited protection under the Financial Services
Compensation Scheme of England.

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. If the Depository becomes insolvent, then 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.

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, 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 reality that the Deposit Accounts will not be
held in the U.S. but instead will be held at the London branch of a U.S. national bank, where it will be 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. The Investment Company Act applies to a range of investment company structures, but, in practice, primarily regulates a company holding a portfolio of investment securities such as publicly-traded stocks, bonds and money
market



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instruments: selected by an affiliated investment adviser pursuant to the companys stated investment objectives, policies, restrictions, strategies and
techniques where the investment adviser manages the portfolio and otherwise operates the company on a day-to-day basis for a management fee and other charges and expenses and, in doing so, has conflicts of interest with the company; valued, priced
for sale and redemption, physically held and traded in securities markets pursuant to computational, custody and brokerage and other transactional requirements peculiar to such a portfolio of investment securities; and overseen by the companys
board of directors that is elected, constituted and governed pursuant to specified standards developed in the context of such a portfolio of investment securities.

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 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, then
its sole recourse will be 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 accrues daily and is paid monthly. 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.

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 were 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.



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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 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.

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 may be terminated by The Bank of New York 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 (BNY) 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 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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s patent applications issue as patents, then BNY 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.



7



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##### Table of Contents

|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. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
|------- | ---------------------------------------------------

None.

PART II



|Item 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
|------- | -------------------------------------------------------------------------------------------------------------

For each of the quarters during the fiscal years ended October 31, 2008 and October 31, 2007, the high and low sale prices of the Shares as reported for NYSE
(prior to October 30, 2007) and NYSE Arca transactions (on and after October 30, 2007) were as follows:



|                                             |  |      |        |     |   |      
|-------------------------------------------- |  | ---- | ------ | --- | - | -----
|Fiscal Year Ended October 31, 2008:          |  | High |        | Low
|Quarter Ended                                |  |      |        |     |   |      
|January 31, 2008                             |  | $    | 93.92  |     | $ | 87.18
|April 30, 2008                               |  | $    | 102.54 |     | $ | 92.23
|July 31, 2008                                |  | $    | 96.94  |     | $ | 92.14
|October 31, 2008                             |  | $    | 106.60 |     | $ | 90.18
|                                             |  |     
|Fiscal Year Ended October 31, 2007:          |  | High |        | Low
|Quarter Ended                                |  |      |        |     |   |      
|April 30, 2007 (beginning February 13, 2007) |  | $    | 86.45  |     | $ | 82.46
|July 31, 2007                                |  | $    | 84.34  |     | $ | 80.80
|October 31, 2007                             |  | $    | 88.13  |     | $ | 83.52

The number of record holders of Shares of the registrant as of November 30, 2008 was approximately 119.

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    |  | 950,000   |  | $             | 90.95 
|September |  | 100,000   |  | $             | 94.39 
|October   |  | 2,050,000 |  | $             | 104.40



8



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##### Table of Contents

|ITEM 6. | SELECTED FINANCIAL DATA
|------- | -----------------------

Financial highlights for the fiscal year
ended October 31, 2008 and the period from February 1, 2007 (date of inception) to October 31, 2007.



|                                     |  |                                   |            |   |                                                        |   |            |  
|------------------------------------ |  | --------------------------------- | ---------- | - | ------------------------------------------------------ | - | ---------- | -
|                                     |  | Fiscal Year EndedOctober 31, 2008 |            |   | February 1, 2007[Date of Inception]to October 31, 2007 |  
|Income                               |  |                                   |            |   |                                                        |   |            |  
|Interest income                      |  | $                                 | 2,267,825  |   |                                                        | $ | 978,942    |  
|                                     |  |                                   |            |   |                                                        |   |            |  
|Total Income                         |  |                                   | 2,267,825  |   |                                                        |   | 978,942    |  
|                                     |  |                                  
|Expenses                             |  |                                   |            |   |                                                        |   |            |  
|Sponsors fee                        |  |                                   | (3,866,277 | ) |                                                        |   | (1,646,945 | )
|                                     |  |                                   |            |   |                                                        |   |            |  
|Total Expenses                       |  |                                   | (3,866,277 | ) |                                                        |   | (1,646,945 | )
|Net Loss                             |  | $                                 | (1,598,452 | ) |                                                        | $ | (668,003   | )
|                                     |  |                                   |            |   |                                                        |   |            |  
|Other Comprehensive Income           |  |                                   |            |   |                                                        |   |            |  
|Currency translation adjustment      |  |                                   | (29,686    | ) |                                                        |   | (5,484     | )
|                                     |  |                                   |            |   |                                                        |   |            |  
|Total Comprehensive Loss             |  | $                                 | (1,628,138 | ) |                                                        | $ | (673,487   | )
|                                     |  |                                   |            |   |                                                        |   |            |  
|Basic and Diluted Earnings per Share |  | $                                 | (0.16      | ) |                                                        | $ | (0.10      | )
|Weighted-average Shares Outstanding  |  |                                   | 10,243,579 |   |                                                        |   | 6,564,469  |  
|Cash Dividends per Share             |  | $                                 | 0          |   |                                                        | $ | 0          |  

For the fiscal year ended October 31, 2008, total assets were $791,721,844 and net cash flows were
$(114,092,781).



|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|------- | -------------------------------------------------------------------------------------

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 as determined by the Federal Reserve Bank of New York.



9



---

##### Table of Contents

LOGO

Historical values of the Noon Buying Rate can be obtained at http://www.ny.frb.org/markets/fxrates/noon.cfm.

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, expressed as a multiple of 10,000 Japanese Yen (Noon Buying Rate x 10,000):

LOGO



10



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##### Table of Contents

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, London branch, maintains two deposit
accounts for the Trust, a primary deposit account that earns interest and a secondary deposit account that does not earn interest. Interest on the primary deposit account accrues daily and is paid monthly. The interest rate paid as of
October 31, 2008 was an annual nominal rate of 0.11%. The following chart provides the daily rate paid by the Depository since the Shares began trading.

LOGO

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 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 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 Financial Accounting Standard 52, Foreign Currency Translation.



11



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##### Table of Contents

RESULTS OF OPERATIONS

The Trust was formed on February 1, 2007, and the shares commenced trading on the NYSE on February 13, 2007. The primary listing of the shares was transferred to the NYSE Arca on October 30, 2007. As of October 31, 2007,
the number of Japanese Yen owned by the Trust was 104,392,278,392 resulting in a redeemable capital share value of $905,508,387.

During the year ended
October 31, 2008, an additional 5,650,000 shares had been created in exchange for 56,402,589,706 Japanese Yen and 9,100,000 shares were redeemed in exchange for 90,808,736,402 Japanese Yen. As of October 31, 2008, the number of Japanese
Yen owned by the Trust was 69,814,982,754 resulting in a USD value of $710,233,832.



|Item 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|-------- | ----------------------------------------------------------

Not
applicable.



|Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|------- | -------------------------------------------

See Index to Financial
Statements on page F-1 for a list of the financial statements being filed therein.



|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, 2008. 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.

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, 2008. 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, 2008.



12



---

##### Table of Contents

The assessment by the chief executive officer and chief financial officer of the Sponsor of the effectiveness of the
Trusts internal control over financial reporting as of October 31, 2008 has been audited by PricewaterhouseCoopers LLP, the independent registered public accounting firm that audited and reported on the financial statements included in
this annual report, 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 AND EXECUTIVE OFFICERS OF THE REGISTRANT.
|-------- | ---------------------------------------------------

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 AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
|-------- | --------------------------------------------------------------------------

Not applicable.



|Item 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES.
|-------- | ---------------------------------------

PricewaterhouseCoopers LLP
is the independent registered public accounting firm for the Trust. Fees for services performed by PricewaterhouseCoopers LLP for the fiscal years ended October 31, 2008 and October 31, 2007 were:



|                   |  |      |        |      |   |       
|------------------ |  | ---- | ------ | ---- | - | ------
|                   |  | 2008 |        | 2007
|Audit Fees         |  | $    | 13,125 |      | $ | 22,500
|Audit-related fees |  | $    | 26,250 |      | $ | 12,500
|Tax fees           |  |      | 0      |      |   | 0     
|All other Fees     |  |      | 0      |      |   | 0     
|                   |  |      |        |      |   |       
|                   |  | $    | 39,375 |      | $ | 35,000
|                   |  |      |        |      |   |       



13



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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 PricewaterhouseCoopers 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.                                                              



14



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##### Table of Contents

CurrencySharesSMJapanese Yen Trust

Financial
Statements as of October 31, 2008

Index



|                                                                                                                                                                |  |     
|--------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|                                                                                                                                                                |  | Page
|Report of Independent Registered Public Accounting Firm                                                                                                         |  | F-2 
|                                                                                                                                                                | 
|Statements of Financial Condition at October 31, 2008 and October 31, 2007                                                                                      |  | F-3 
|                                                                                                                                                                | 
|Statements of Income and Comprehensive Income for the year ended October 31, 2008 and the period from February 1, 2007 (date of inception) to October 
31, 2007 |  | F-4 
|                                                                                                                                                                | 
|Statements of Changes in Shareholders Equity for the year ended October 31, 2008 and the period from February 1, 2007 (date of inception) to October 
31, 2007 |  | F-5 
|                                                                                                                                                                | 
|Statements of Cash Flows for the year ended October 31, 2008 and the period from February 1, 2007 (date of inception) to October 31, 2007                       |  | F-6 
|                                                                                                                                                                | 
|Notes to the Financial Statements                                                                                                                               |  | F-7 



F-1



---

##### Table of Contents

Report of Independent Registered Public Accounting Firm

To the Shareholders of CurrencySharesSMJapanese Yen Trust:

In our opinion, the accompanying
statements of financial condition and the related statements of income and comprehensive income, of changes in shareholders equity and of cash flows present fairly, in all material respects, the financial position of CurrencySharesSMJapanese Yen Trust (the Trust) at October 31, 2008 and October 31, 2007, and the results of its operations and its cash flows for the
year ended October 31, 2008 and for the period February 1, 2007 (commencement of operations) through October 31, 2007 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion,
the Trust maintained, in all material respects, effective internal control over financial reporting as of October 31, 2008, based on criteria established in Internal Control - Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). The Trusts management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting, included in managements report on internal control over financial reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements and on the
Trusts internal control over financial reporting based on our audits (which was integrated in 2008). We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material
respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits
provide a reasonable basis for our opinions.

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 (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) 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 (iii) 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.



|                          
|--------------------------
|PricewaterhouseCoopers LLP
|                          
|Baltimore, Maryland       
|December 29, 2008         



F-2



---

##### Table of Contents

CurrencySharesSMJapanese Yen Trust

Statements of
Financial Condition



|                                                                                                                                                    |  |                  |             |                  |   |            
|--------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------- | ----------- | ---------------- | - | -----------
|                                                                                                                                                    |  | October 31, 2008 |             | October 31, 2007
|Assets                                                                                                                                              |  |                  |             |                  |   |            
|Current Assets                                                                                                                                      |  |                  |             |                  |   |            
|Japanese Yen deposits, interest bearing                                                                                                             |  | $                | 791,539,894 |                  | $ | 905,632,675
|Japanese Yen deposits, non-interest bearing                                                                                                         |  |                  |            |                  |   |           
|Receivable from accrued interest                                                                                                                    |  |                  | 181,950     |                  |   | 180,985    
|                                                                                                                                                    |  |                  |             |                  |   |            
|Total Assets                                                                                                                                        |  | $                | 791,721,844 |                  | $ | 905,813,660
|                                                                                                                                                    |  |                  |             |                  |   |            
|Liabilities and Shareholders Equity                                                                                                                |  |                  |             |                  |   |            
|Current Liabilities                                                                                                                                 |  |                  |             |                  |   |            
|Redemptions Payable                                                                                                                                 |  | $                | 81,171,734  |                  | $ |           
|Accrued Sponsors fee                                                                                                                               |  |                  | 316,278     |                  |   | 305,273    
|                                                                                                                                                    |  |                  |             |                  |   |            
|Total Liabilities                                                                                                                                   |  |                  | 81,488,012  |                  |   | 305,273    
|                                                                                                                                                    |  |                 
|Commitments and Contingent Liabilities (note 8)                                                                                                     |  |                  |            |                  |   |           
|Redeemable Capital Shares, at redemption value, no par value, 23,870,000 authorized  7,000,000 and 10,450,000 issued and outstanding,
respectively |  |                  | 710,233,832 |                  |   | 905,508,387
|Shareholders Equity  Retained Earnings and Cumulative Translation Adjustment                                                                      |  |                  |            |                  |   |           
|                                                                                                                                                    |  |                  |             |                  |   |            
|Total Liabilities and Shareholders Equity                                                                                                          |  | $                | 791,721,844 |                  | $ | 905,813,660
|                                                                                                                                                    |  |                  |             |                  |   |            

See Notes to Financial Statements.



F-3



---

##### Table of Contents

CurrencySharesSMJapanese Yen Trust

Statements of
Income and Comprehensive Income



|                                     |  |                            |            |   |                                                        |   |            |  
|------------------------------------ |  | -------------------------- | ---------- | - | ------------------------------------------------------ | - | ---------- | -
|                                     |  | Year endedOctober 31, 2008 |            |   | February 1, 2007[Date of Inception]to October 31, 2007 |  
|Income                               |  |                            |            |   |                                                        |   |            |  
|Interest income                      |  | $                          | 2,267,825  |   |                                                        | $ | 978,942    |  
|                                     |  |                            |            |   |                                                        |   |            |  
|Total Income                         |  |                            | 2,267,825  |   |                                                        |   | 978,942    |  
|                                     |  |                           
|Expenses                             |  |                            |            |   |                                                        |   |            |  
|Sponsors fee                        |  |                            | (3,866,277 | ) |                                                        |   | (1,646,945 | )
|                                     |  |                            |            |   |                                                        |   |            |  
|Total Expenses                       |  |                            | (3,866,277 | ) |                                                        |   | (1,646,945 | )
|                                     |  |                           
|Net Loss                             |  | $                          | (1,598,452 | ) |                                                        | $ | (668,003   | )
|                                     |  |                            |            |   |                                                        |   |            |  
|Other Comprehensive Income           |  |                            |            |   |                                                        |   |            |  
|Currency translation adjustment      |  |                            | (29,686    | ) |                                                        |   | (5,484     | )
|                                     |  |                            |            |   |                                                        |   |            |  
|Total Comprehensive Loss             |  | $                          | (1,628,138 | ) |                                                        | $ | (673,487   | )
|                                     |  |                            |            |   |                                                        |   |            |  
|Basic and Diluted Earnings per Share |  | $                          | (0.16      | ) |                                                        | $ | (0.10      | )
|Weighted-average Shares Outstanding  |  |                            | 10,243,579 |   |                                                        |   | 6,564,469  |  
|Cash Dividends per Share             |  | $                          | 0          |   |                                                        | $ | 0          |  

See Notes to Financial Statements.



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##### Table of Contents

CurrencySharesSMJapanese Yen Trust

Statements of
Changes in Shareholders Equity



|                                                            |  |                            |            |   |                                                        |   |          |  
|----------------------------------------------------------- |  | -------------------------- | ---------- | - | ------------------------------------------------------ | - | -------- | -
|                                                            |  | Year endedOctober 31, 2008 |            |   | February 1, 2007[Date of Inception]to October 31, 2007 |  
|Retained Earnings Balance, Beginning of Period              |  | $                          |           |   |                                                        | $ |         |  
|Net Loss                                                    |  |                            | (1,598,452 | ) |                                                        |   | (668,003 | )
|Adjustment of redeemable capital shares to redemption value |  |                            | 1,598,452  |   |                                                        |   | 668,003  |  
|                                                            |  |                            |            |   |                                                        |   |          |  
|Retained Earnings Balance, End of Period                    |  | $                          |           |   |                                                        | $ |         |  
|                                                            |  |                            |            |   |                                                        |   |          |  
|Cumulative Translation Adjustment, Beginning of Period      |  | $                          |           |   |                                                        | $ |         |  
|Currency translation adjustment                             |  |                            | (29,686    | ) |                                                        |   | (5,484   | )
|Adjustment of redeemable capital shares to redemption value |  |                            | 29,686     |   |                                                        |   | 5,484    |  
|                                                            |  |                            |            |   |                                                        |   |          |  
|Cumulative Translation Adjustment, End of Period            |  | $                          |           |   |                                                        | $ |         |  
|                                                            |  |                            |            |   |                                                        |   |          |  

See Notes to Financial Statements.



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##### Table of Contents

CurrencySharesSMJapanese Yen Trust

Statements of
Cash Flows



|                                                                                 |  |                            |              |   |                                                        |   |             |  
|-------------------------------------------------------------------------------- |  | -------------------------- | ------------ | - | ------------------------------------------------------ | - | ----------- | -
|                                                                                 |  | Year endedOctober 31, 2008 |              |   | February 1, 2007[Date of Inception]to October 31, 2007 |  
|Cash flows from operating activities                                             |  |                            |              |   |                                                        |   |             |  
|Cash received for accrued income                                                 |  | $                          | 2,294,074    |   |                                                        | $ | 798,376     |  
|Cash paid for expenses                                                           |  |                            | (3,903,294   | ) |                                                        |   | (1,342,159  | )
|                                                                                 |  |                            |              |   |                                                        |   |             |  
|Net cash used in operating activities                                            |  |                            | (1,609,220   | ) |                                                        |   | (543,783    | )
|                                                                                 |  |                           
|Cash flows from financing activities                                             |  |                            |              |   |                                                        |   |             |  
|Cash received to purchase redeemable shares                                      |  |                            | 530,322,592  |   |                                                        |   | 967,524,914 |  
|Cash paid to redeem redeemable shares                                            |  |                            | (778,816,105 | ) |                                                        |   | (88,307,888 | )
|                                                                                 |  |                            |              |   |                                                        |   |             |  
|Net cash (used in)/provided by financing activities                              |  | $                          | (248,493,513 | ) |                                                        | $ | 879,217,026 |  
|                                                                                 |  |                           
|Adjustment to period cash flows due to currency movement                         |  |                            | 136,009,952  |   |                                                        |   | 26,959,349  |  
|                                                                                 |  |                            |              |   |                                                        |   |             |  
|(Decrease)/Increase in cash                                                      |  |                            | (114,092,781 | ) |                                                        |   | 905,632,592 |  
|Cash at beginning of period                                                      |  |                            | 905,632,675  |   |                                                        |   | 83          |  
|                                                                                 |  |                            |              |   |                                                        |   |             |  
|Cash at end of period                                                            |  | $                          | 791,539,894  |   |                                                        | $ | 905,632,675 |  
|                                                                                 |  |                            |              |   |                                                        |   |             |  
|Reconciliation of net income to net cash provided by operating activities        |  |                            |              |   |                                                        |   |             |  
|                                                                                 |  |                           
|Net Loss                                                                         |  | $                          | (1,598,452   | ) |                                                        | $ | (668,003    | )
|Adjustments to reconcile net income to net cash provided by operating activities |  |                            |              |   |                                                        |   |             |  
|Increase in receivable from accrued interest                                     |  |                            | (181,950     | ) |                                                        |   | (180,985    | )
|Decrease in prior period receivable from accrued interest                        |  |                            | 180,985      |   |                                                        |   |            |  
|Currency translation adjustment                                                  |  |                            | (20,808      | ) |                                                        |   | (68         | )
|Increase in accrued sponsor fee                                                  |  |                            | 316,278      |   |                                                        |   | 305,273     |  
|Decrease in prior period accrued sponsor fee                                     |  |                            | (305,273     | ) |                                                        |   |            |  
|                                                                                 |  |                            |              |   |                                                        |   |             |  
|Net cash used in operating activities                                            |  | $                          | (1,609,220   | ) |                                                        | $ | (543,783    | )

See Notes to Financial Statements.



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##### Table of Contents

Notes to Financial Statements



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

The CurrencySharesSMJapanese 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 PADCO Advisors II, Inc. (also d/b/a Rydex Investments). The Sponsor is responsible for, among other things, overseeing the performance of
The Bank of New York (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 earns interest and a secondary deposit account which does not earn interest. The secondary deposit account is used to account for interest
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 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. 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. For NAV calculation purposes, Japanese Yen Deposits (cash) are translated at the Noon Buying Rate, which is the U.S. Dollar (USD)/ Japanese
Yen exchange rate as determined and published by the Federal Reserve Bank of New York as of 12:00 PM (New York time) on each day that NYSE Arca is open for regular trading.

The functional currency of the Trust is the Japanese Yen in accordance with Financial Accounting Standard (FAS) 52, Foreign Currency Translation. For financial statement reporting purposes, the
U.S. Dollar is the reporting currency. As a result, the financial statements are translated from Japanese Yen to USD. The Noon Buying Rate on the last day of the period is used for translation in the statements of financial condition. The
average Noon Buying 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.



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| | 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 shares of the Trusts income, if any, and as if they directly incurred their respective pro-rata shares 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 share 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 gain (if any) upon the sale of Japanese Yen and interest income. 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 share 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
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, 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).



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

Japanese Yen principal deposits are held in
a Japanese Yen -denominated, interest-bearing demand account. For the year ending October 31, 2008, there were Japanese Yen principal deposits of 56,402,589,706, Japanese Yen principal redemptions of



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##### Table of Contents

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. For the year ending October 31, 2007, there were Japanese Yen principal deposits of 114,948,442,144, Japanese Yen principal redemptions of 10,491,568,774, and Japanese Yen withdrawals (to pay expenses) of 64,604,978
resulting in an ending Japanese Yen principal balance of 104,392,278,392. This equates to 905,632,675 USD.



|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 DTC participant that is a registered broker-dealer or other institution eligible to settle
securities transactions though the book-entry facilities of the 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.

Activity in redeemable capital Shares is as follows:



|                                                               |  |                            |   |  |                                                                    |              |   |        |            |   |                   |   |             |  
|-------------------------------------------------------------- |  | -------------------------- | - |  | ------------------------------------------------------------------ | ------------ | - | ------ | ---------- | - | ----------------- | - | ----------- | -
|                                                               |  | Year endedOctober 31, 2008 |   |  | Period from February 1, 2007[Date of Inception]to
October 31, 2007 |             
|                                                               |  | Shares                     |   |  | U.S. DollarAmount                                                  |              |   | Shares |            |   | U.S. DollarAmount |  
|Opening balance                                                |  | 10,450,000                 |   |  | $                                                                  | 905,508,387  |   |        | 1          |   |                   | $ | 83          |  
|Shares issued                                                  |  | 5,650,000                  |   |  |                                                                    | 530,322,592  |   |        | 11,500,000 |   |                   |   | 967,524,914 |  
|Shares redeemed                                                |  | (9,100,000                 | ) |  |                                                                    | (853,824,704 | ) |        | (1,050,001 | ) |                   |   | (88,307,888 | )
|Adjustment to period Shares due to currency movement and other |  |                           |   |  |                                                                    | 128,227,557  |   |        |           |   |                   |   | 26,291,278  |  
|                                                               |  |                            |   |  |                                                                    |              |   |        |            |   |                   |   |             |  
|Ending redemption balance                                      |  | 7,000,000                  |   |  | $                                                                  | 710,233,832  |   |        | 10,450,000 |   |                   | $ | 905,508,387 |  

The Trustee will calculate the Trusts NAV each business day. To calculate the NAV, the Trustee will subtract
the Sponsors accrued fee through the previous day from the Japanese Yen held by the Trust (including all unpaid interest accrued through the preceding day) and calculate the value of the Japanese Yen in USD based upon the Noon Buying Rate. If,
on a particular evaluation day, the Noon Buying Rate has not been determined and announced by 2:00 PM (New York time), then the most recent Federal Reserve



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##### Table of Contents

Bank of New York determination of the Noon Buying Rate shall 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 such valuation. In the event that the Trustee and the Sponsor determine that the most recent Federal Reserve Bank of New York determination of the Noon Buying Rate is not an
appropriate basis for valuation of the Trusts Japanese Yen, they shall determine an alternative basis for such evaluation to be employed by the Trustee. 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.



|5. | 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. The Sponsor has also paid the costs
of the Trusts organization and the initial sales of the Shares, which were approximately $355,000 when the Trust was formed.

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.



|6. | 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.
The Sponsor has paid the costs of the Trusts organization and the initial sales of the Shares, as described in Note 5.



|7. | 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 price of 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.



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##### Table of Contents

|8. | 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 these arrangements is unknown, as this would
involve future claims that may be made against the Trust that have not yet occurred.



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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 December 30, 2008.



CURRENCYSHARESSM JAPANESE YEN TRUSTBy

Rydex Specialized Products LLCSponsor of the CurrencySharesSMJapanese Yen TrustBy:

/s/ KEVIN FARRAGHERKevin Farragher Chief 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/ KEVIN FARRAGHER     |  | Chief Executive Officer                    |  |                  
|Kevin Farragher         |  | (principal executive officer)              |  | December 30, 2008
|                        |  |                                           
|                        |  | Director and Chief Financial Officer       |  |                  
|/s/ NICK BONOS          |  | (principal financial officer and principal |  |                  
|Nick Bonos              |  | accounting officer)                        |  | December 30, 2008
|                        |  |                                           
|/s/ CARL G. VERBONCOEUR |  | Director and Treasurer                     |  |                  
|Carl G. Verboncoeur     |  |                                            |  | December 30, 2008
|                        |  |                                           
|/s/ MICHAEL BYRUM       |  | Director                                   |  |                  
|Michael Byrum           |  |                                            |  | December 30, 2008



|* | 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.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------