The Japanese yen reversed its earlier rally during the currency trading session, falling below the opening level against such most-traded currencies like the US dollar and the Great Britain pound. The reason for the drop was the rally of crude oil prices.
Yesterday, the decline of crude oil prices was helping the yen by igniting the risk-negative sentiment among traders. Yet today crude bounced, making the safe haven role of the Japanese currency less relevant. Saying that, the upcoming policy meeting of the Federal Reserve causes nervousness among market participants, meaning that demand for safety may return.
USD/JPY traded at about 118.33 as of 13:11 GMT today after opening at 118.29 and falling to the low of 117.65 intraday. GBP/JPY was at 168.62 following the drop from the open of 168.53 to the session low of 166.96.
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