Yen Strengthens as Traders Look for Safer Assets

With volatility on the rise, many Forex traders are looking for a little safety. As a result, it’s not really surprising that the yen is heading higher. Yen is on the rise as traders and investors look for a little safe haven as they await the next round of economic data and interest rate decisions.

Japanese yen moved off a six-month low against the US dollar and is gaining ground against the euro and the pound as well right now. With European stocks lower today, and with US stocks struggling, it appears that risk appetite is fleeing and there is focus on safer assets. As a result, the Japanese yen is in demand right.

There is a great deal of volatility in major markets, and with major currencies right now. Interest rate decisions are expected from the ECB and BOE on Thursday, and many investors are looking forward to November’s jobs data. This economic data might hold the key to whether or not the Federal Reserve begins tapering its asset purchase this month.

For now, all this volatility is resulting in safe haven demand, and the Japanese yen is heading higher as a result.

At 15:44 GMT USD/JPY is down to 102.5150 from the open at 102.9530. EUR/JPY is down to 139.2650 from the open at 139.4050. GBP/JPY is down to 168.2315 from the open at 168.3650.

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