Yen Pulls Back After Yesterday’s Gains

Yen is pulling back a little bit today following yesterday’s gains. While the yen is still higher against an ailing greenback, it is lower against its European counterparts again.

Japanese yen is mostly lower against its high beta counterparts today, dropping back against the euro and the pound. However, the yen is still gaining against the US dollar, which is generally struggling today.
There is a lot of interest in the yen right now, thanks in large part to the latest change to the Bank of Japan’s payment and settlement system. For the first time in 27 years, the BOJ has launched a new system designed to extend the operating hours of the system and making the yen easier to use across the Asian continent.
While the system has been running in some form since early 2014, the full operation of the system only came online yesterday. In early 2016, the BOJ’s payment and settlement system will run for even longer each day, including some overlap with trading hours in Europe. The hope is that the new system will make the yen more desirable for international transactions.
At 14:10 GMT USD/JPY is down to 119.4390 from the open at 119.7440. EUR/JPY is up to 136.4370 from the open at 136.2570. GBP/JPY is up to 184.3050 from the open at 182.5870.

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