After losing massively towards the end of the past week due to a wave of renewed risk appetite, the Japanese currency was unable to pare its losses as optimism remains strong in trading markets worldwide, damping demand for the safety profile of the yen.
The yen lost today as markets in Asia operated influenced by Federal Reserve Chairman Ben Bernanke‘s statement last Friday suggesting that the world is likely to revive its economic growing path in 2010, making currencies like the South Korean won and the Australian dollar to gain versus the yen in the far east morning hours. The euro also climbed significantly versus the yen as another report raised confidence towards the European economic conditions, this time industrial orders in the region had the sharpest climb in 19 months.
Finally constant economic news are providing evidences that the worst of the global slump is indeed behind, which is bringing a number of investors who kept their portfolios in safer assets to purchase higher-yielding opportunities as the odds of surprisingly bad news decline day by day. The yen forecast is bearish, as there is still significant space for economic improvement worldwide, which will tend to reflect negatively for the yen’s attractiveness.
EUR/JPY traded at 135.65 as of 11:11 GMT from an opening price hours earlier of 135.37. AUD/JPY followed from 78.91 to a current rate of 79.62.
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