Japanese Yen Gains in Forex Trading

Japanese yen is higher in forex trading this afternoon, after losing ground earlier. The initial excitement over the announcement from the eurozone is fading and the yen is gaining.

Earlier, the announcement that eurozone countries are agreeing to re-visit the way the economy is set up boosted the euro and other currencies against the yen. The attempt will be to integrate the economies of individual countries a little closer in order to prevent further debt crises.
Now, a measure of caution has been introduced, and Forex traders are trying to figure out what is likely to come next — and how realistic it will be to solve the current debt crisis and prevent future crises.
As a result, the yen is gaining ground now. Before, the yen had moved lower, but now it has the upper hand as Forex traders reconsider the situation, and weigh other economic news from around the world. Indeed, stocks are falling back after a strong open, and oil prices have slipped back to $101 a barrel, after breaking the $102 a barrel mark.
With the return of a measure of caution, it is little surprise that safe currencies like the Japanese yen and the US dollar are on the rise — especially with concerns about European credit ratings.
At 19:73 GMT USD/JPY is lower at 77.8035, down from the open at 78.0250. EUR/JPY is lower at 104.2295, down from the open at 104.7550. GBP/JPY is down to 121.7225 from the open at 121.9350.

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