Safe Haven Demand Sends Japanese Yen Higher

Japanese yen is heading higher against its major counterparts today as safe haven demand increases. A number of concerns are causing a bit of risk aversion and the yen is in demand as Forex traders look for a bit of safety.

The latest PMI data is in for Japan, and it was lower than forecast. Preliminary data suggests a reading of 50.9 when many had expected to see a print of 51.2. However, the disappointing PMI isn’t having much of an impact on the yen today because there are other forces at play.
Right now, risk aversion is making an appearance in the markets on the latest disappointing data out of China. Concerns that China could precipitate a global economic slowdown are weighing on stock markets around the world, and causing a bit of concern. As a result, and without any other big news to dwell on, many Forex traders are turning to safe haven currencies for protection. The yen is in demand as a safe haven and is gaining ground its major counterparts right now.
At 14:57 GMT USD/JPY is lower, heading down to 119.5960 from the open at 120.2720. EUR/JPY is also lower, dropping to 134.4650 from the open at 134.5340. GBP/JPY is down as well, falling to 182.3220 from the open at 183.3510.

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