Currency Hedging Strategies for ABC Corporation

ABC Corporation is a multinational firm based in the United States that imports goods from Europe and exports products to Asia. Recently, ABC Corporation has observed significant fluctuations in the Euro/USD and USD/JPY exchange rates, which have begun to affect its profit margins. The CFO of ABC Corporation is concerned that continued volatility in these currencies will pose further risks to the company's earnings.

As a financial analyst, your task is to recommend a currency hedging strategy for ABC Corporation. Discuss the different methods available for hedging currency risk, including forward contracts, options, and natural hedging techniques. Explain the advantages and disadvantages of each method, and provide a specific recommendation tailored to ABC Corporation’s exposure to the Euro and Japanese Yen. Consider the company's risk tolerance, cash flow needs, and market conditions in your analysis.