JPY Daily News

Risk-Aversion Continues To Boost the Yen

The Yen rallied against most of the major currencies during last week's trading session. The Yen gained about 800 pips vs. the Euro and about 850 pips against the Pound.

The Yen's extraordinary bullish trend against most of the major currencies continues to be a direct result to the Greek debt crisis. At the moment, despite the enormous bailout package which was offered to Greece, the market still has sincere concerns regarding the ability of the Euro-Zone to outlast the current crisis. The largest concerns are whether other nations in the Euro-Zone, such as Spain and Portugal will seek rescue packages as well. This creates high uncertainty in the market, which leads to risk aversion. When investors look for safer assets they usually tend to invest in the Yen and the Dollar, especially the Yen, which is considered to be the safest currency in the market. It seems that for as long as the Greek crisis continues to remain unsolved, the Yen is likely to strengthen further.

As for this week, traders are advised to continue to follow the developments regarding the Greek debt crisis and its affects over the Euro-Zone, as this seems to have the largest impact on the Yen at the moment. In addition, traders should follow the leading news publications from the Japanese economy, especially the Preliminary Gross Domestic Product, which is expected on Wednesday.

Current Time: 05/26 23:04 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
05/17
	00:50	JPY	Tertiary Industry Activity Index	m/m	-0.2%	-1.3%	-3.0%