Japanese Yen Slips after Earlier Safe Haven Gains

Japanese yen is slipping against high beta currencies, after logging gains earlier. With risk appetite making an appearance, the yen isn’t required as a safe haven right now.

Japanese yen got a boost earlier against high beta currencies pound and euro. Right after Italian PM Mario Monti announced that he would be resigning, concerns about the eurozone spiked. The result was that safe haven currencies like the yen saw an increase in demand.
Since the announcement, however, things have settled down a bit. The yen is now heading lower against high beta currencies, losing ground as the focus shifts away from safe haven trading, and as Forex traders once again speculate about increasingly aggressive easing likely to come from the Bank of Japan in coming weeks.
Now, the yen is only maintaining its gains against the US dollar as it falls against the euro and the pound. The latest earthquake in Japan underscores the continued issues with rebuilding the economy, and many feel that more stimulus will be needed to keep the economy going, and that means weakening the yen further.
At 15:12 GMT USD/JPY is down to 82.2700 from the open at 82.5800. EUR/JPY is up to 106.4450 from the open at 106.3750. GBP/JPY is up to 132.3605 from the open at 132.3550.

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