Japanese Yen Gains Ground on Risk Aversion

A degree of risk aversion is afflicting financial markets today, and that is resulting in a higher Japanese yen. Yen is gaining against its high beta counterparts the euro and the UK pound, while falling against the US dollar. Concerns about the eurozone are, once again, taking precedence in global financial markets.

Japanese yen is heading higher today against the euro and the UK pound, thanks to the latest round of data. Further contraction in eurozone manufacturing data indicates that the 17-nation currency region might be in recession. The news isn’t helping the UK pound, either, which is dropping as well. Yen is finding support as a safe haven, as Forex traders look for currencies considered stable.
Yen is down against the US dollar, though. News out of the United States is showing improvement. Private sector payroll expansion was seen in April, and earnings news continues to provide some positivity. The result is a fairly strong US dollar, with a performance against the yen that could help stave off intervention by the Bank of Japan — at least for a little while.
At 13:27 GMT EUR/JPY is lower at 105.2920, down from the open at 106.0300. GBP/JPY is lower at 129.5825, down from the open at 129.9150. USD/JPY is higher at 80.1400, up from the open at 80.0950.

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