Japanese Yen Gains Sharply against Euro, Pound

Japanese yen is gaining against all its rivals today, as the stocks fall down and the high-risk currencies start to meet their demise. While traditional carry trade counterparts of yen — Australian and New Zealand dollars, are often unstable during such times, the less risky euro and Great Britain pound are also losing now.
The euro has already reached its lowest minimum since 22nd of August, 2007, touching the 153.73 mark. And it’s only a start of the London trading session now.
The pound is performing just a little better against the yen today. It has already reached the lowest minimum level since 17th of May, 2007, touching the 206.60 mark. The downward slope on GBP/JPY is looking quite sharp now, asking a correction soon or even a greater drop (which would probably be caused by a global economy recession).
EUR/JPY lost more than 1.3% today, while GBP/JPY is only getting closer to this level of loss now. The remarkable point about these downward trends on EUR/JPY and GBP/JPY is that the short trades on these currency pairs bear a negative daily interest. It means either that traders are so confident in their positions, or that this trend is caused mainly by the carry trade position closing.

If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.