Yen is pulling back today, becoming subdued. However, even with the lower performance today and warnings about future monetary policy, the yen is retaining some of its safe haven strength.
Soft fundamentals in the Japanese economy are leading to some concerns that Bank of Japan policymakers will need to take more action when they meet in March. The BOJ already shocked Forex traders and investors by instituting negative interest rates during their last meeting, and many are speculating about what could be next.
Even though there are expectations that policymakers will continue to try to weaken the Japanese yen, the yen is still maintaining some of its strength. It is lower today against major currencies, but the yen hasn’t dropped as much as some think it should, considering the attempts at easing. Instead, the yen is retaining some of its strength due to safe haven status.
Because the markets are so unsettled right now, and there is a great deal of uncertainty, some Forex traders are still turning to the yen for its reputation of stability.
At 16:55 GMT USD/JPY is up to 112.7880 from the open at 111.9450. EUR/JPY is up to 124.1650 from the open at 123.2210. GBP/JPY is up to 156.9860 from the open at 155.9640.
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