Japanese yen is heading lower as risk appetite makes an appearance on the Forex market. The news out of Cyprus is indicating a certain level of improvement — and showing that the ECB is serious about doing whatever it takes to keep the euro whole.
Earlier, the yen saw some small gains as concerns related to Cyprus prompted interest in a safe haven. Also supporting the yen was an indication of improvement in the Japanese economy. The Japan Department Stores Association reported an increase of sales by 0.3 per cent in February. The news that the economy might be improving resulted in the idea that aggressive stimulus might not be needed by the Bank of Japan.
Even with this news, though, many Forex traders are wary of what the Bank of Japan will do next. With the new head likely to be in line with PM Shinzo Abe‘s views of aggressive stimulus, the meager sales number might not be enough to hold of stimulus efforts, which will further weaken the yen.
For now, risk appetite is sufficient to send the yen a little lower, and the currency is down against its counterparts.
At 15:18 GMT USD/JPY is up to 95.5500 from the open at 95.1350. EUR/JPY is up to 123.7335 from the open at 122.4250. GBP/JPY is up to 144.8885 from the open at 143.5950.
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