The Japanese yen traded near the opening level against the US dollar after touching the lowest rate since October 2008 earlier today. The currency is losing ground versus the euro following yesterday’s massive gains.
The disparity between monetary policy outlooks for the Federal Reserve and the Bank of Japan makes the yen less attractive than the dollar even in times when traders seek safer assets, like they were doing after yesterday’s announcement from the European Central Bank. As for the euro, it experienced heavy losses versus all its major peers, including the Japanese currency, yesterday but is trying to gain ground today. Traders wait for US non-farm payrolls, scheduled to be released today, that may drive the Forex market in either direction depending on how good or bad the actual report will be.
USD/JPY rallied from 105.27 to 105.71, the highest level in almost six years, but retreated to 105.11 as of 12:23 GMT today. EUR/JPY traded at 136.28 following the rally from 136.25 to 136.61.
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