Japanese Yen Strengthens Against Majors

Japanese yen is strengthening against majors today, heading higher against the US dollar, euro and the Great Britain pound. Yen buying is on the rise, as Forex traders look for a little direction for what lies ahead.

Earlier, the yen was fairly stable against the US dollar, since Forex traders offloading dollars and buying yen were offset by Japanese firms selling yen in order to invest in offshore resources. However, the dynamic has changed a little bit, and yen buying is more popular right now, forcing USD/JPY lower.
There could be some caution introduced into the scenario, however. With the yen strengthening against the euro and the pound, as well as against the dollar, some Forex traders might get nervous about what Japan’s leaders will do. Japanese leaders have been known to intervene in the currency market when they feel that the yen is strengthening too much, too fast.
For now, Japanese leaders are likely to take a wait and see approach. Indeed, nearly everyone is taking a wait and see approach to just about every market today. The world is holding its collective breath, waiting to see what European Union leaders announce tomorrow. The solution that eurozone leaders have for sovereign debt will make a big difference in all currency performances for the rest of the week.
At 14:04 GMT USD/JPY is down to 75.96, from the open at 76.10. EUR/JPY is also down at 105.47, down from the open at 106.00. GBP/JPY is lower at 121.36, down from the open at 121.74.

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