Japanese yen is heading a bit higher today, gaining as risk aversion sets in and as Forex traders look for a little certainty and stability. Concerns about what’s next in the eurozone, plus the possibility that fiscal cliff talks in the United States will stall, are weighing on risk assets.
Right now, the yen is heading a little bit higher. Even with the expectations that there will be even more easing from the Bank of Japan in the next few weeks, the yen is still gaining today. Concerns about risk are pushing Forex traders to safe haven assets, and the yen is seeing better performance as a result.
With eurozone leaders unable to come up with a solution to the Greece problem — much less to other problems in the area — it is little surprise that risk aversion is once again a main focus for Forex traders. Additionally, even though there is a lot of talk about avoiding the fiscal cliff through compromise, there will still be some fierce political fighting in the United States.
The result of all this uncertainty is likely to be some yen strength for the time being.
At 15:16 GMT USD/JPY is down to 82.1770 from the open at 82.3450. EUR/JPY is down to 106.5570 from the open at 106.7855. GBP/JPY is down to 131.5005 from the open at 132.0350.
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