Risk aversion is back in the markets, and the Japanese yen is getting a boost today. Even though Japanese markets are closed today, the yen is heading higher on concerns about what’s next for the global economy.
Many Forex trader fears were spurred by the latest news out of China. Japanese auto producers in China are reporting sharp drops in sales, and production is being cut in China. The news about China’s growth is also grim, with Chinese growth slowing right now.
All of this news is prompting fears of economic slowdown on a global scale. The United States continues to see a sluggish economic recovery, and the eurozone struggles with its own problems — as well as being on the brink of recession. It is little surprise that safe haven currencies are in demand right now, and that the Japanese yen is performing well against its counterparts.
Japanese yen is gaining pretty much across the board. With the global economy seemingly headed for more turmoil, it is little surprise that the yen is gaining ground. Japanese officials will be on the watch for too much appreciation, standing by to intervene if they feel it necessary.
At 12:58 GMT USD/JPY is down to 78.2400 from the open at 78.6635. EUR/JPY is down to 101.4660 from the open at 102.4550. GBP/JPY is down to 125.3400 from the open at 126.9150.
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