Market Sentiment Helps Yen Maintain Rally

The Japanese yen gained today with help of the general risk-negative market sentiment and good economic data from Japan itself. The currency gained for a second consecutive session against the US dollar and for a third session versus the euro.

The Forex market continues to favor safer currencies as geopolitical tensions in Eastern Europe and Middle East make traders averse to risk. Such sentiment was driving the yen up yesterday and continues to benefit the currency today. Domestic economic indicators were also supportive for the yen as the Services Producer Price Index demonstrated 3.7 percent annual growth for the second month in a row in July.

USD/JPY dropped from 104.05 to 103.88 as of 13:11 GMT today, reaching the low of 103.74 intraday. EUR/JPY ticked down from 137.26 to 137.13.

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