JPY Daily News

JPY Benefits from Strong Risk Appetite as It Advances Against Majors

The JPY underwent a bullish trading session yesterday, as it appreciated against all of its major currency rivals. The JPY was up big, mainly on the unwinding of carry trades responding to the sharp moves in stocks as it did earlier in the year when any sharp equity slide sent the Yen flying higher. Forex carry trading is based on lending the low-interest yen to buy high yielding currencies such as NZD, AUD and EUR.
Carry trading spurred the sale of the EUR against the JPY as U.S. financial shares dragged equity markets lower on persistent credit concerns, which prompted investors to reduce risk.
As usual, the move in the Japanese Yen has little to do with Japanese fundamentals, and instead depends much more on broad risk appetite. Looking ahead today, the Japanese market should have a heavy effect on the JPY versus its major currency counterparts. The Overnight Call Rate was held steady at 0.50%, but traders should pay close attention to the BoJ Press Conference that will follow it to look for expectations of Japan's economic future.

Current Time: 05/27 02:34 GMT

Add events to google calendar Mark all Unmark all Print

#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
10/07
	04:58	JPY	Overnight Call Rate		0.50%	0.50%	0.50%
	04:58	JPY	Monetary Policy Statement		*	*	*
	06:00	JPY	Leading Indicators		91.4%	89.3%	89.3%
	08:19	JPY	BoJ Press Conference		*	*	*