Japanese yen is gaining against the euro and the pound as eurozone troubles continue. Additionally, the yen is getting a boost as Asian companies cut their earnings outlooks.
As sentiment turns negative, Forex traders — and others — look for stability and safe haven. All bonds in the eurozone seem to be taking a hit right now, no matter what country it is. The latest German bund auction was considered a failure, and underscored the eurozone troubles.
On top of that, some Asian companies have cut their forecasts for earnings. This news has investors worried about the state of the global economy. Between the difficulties cropping up in Asia, and continuing troubles in the eurozone, it is little surprise that the yen is demand.
Right now, yen is even gaining against the US dollar. As one of the most stable currencies in the world, the yen is considered a safe haven. It will be interesting to see whether or not Japanese leaders intervene again, in an attempt to slow its appreciation, since a higher yen puts Japanese exports at a disadvantage.
At 5:04 GMT USD/JPY is lower, down to 77.0639 from the open at 77.3060. EUR/JPY is down to 103.0395 from the open at 103.1610. GBP/JPY is also lower, dropping to 119.8475 from the open at 120.0150.
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