JPY Daily News

Strengthening USD Puts Downward Pressure on the Yen

The USD/JPY was driven higher today on the Fed's comments and an increase in risk appetite. Fueling the appreciation of the Dollar was a rise in the Dow Jones Industrial Average. When U.S. equity markets rise, this pair tends to rise as well. Also fueling an increased risk appetite was the passage of Barack Obama's economic bailout plan by the U.S. House of Representatives. These factors helped to rally the USD/JPY to end the day at 89.68. The pair now stands at a one-week high.

The Yen is largely seen as a safe haven currency to be used during times of financial distress. As traders grow more comfortable taking on further risk, they will abandon their positions in the Yen for the USD and higher yielding currencies. Risk sentiment appears to be improving as the Federal Reserve and the Obama administration are teaming up to restore confidence and future prospects for a stable economic recovery. This may boost the USD/JPY in the near term and we may see the pair rise to the 91.00 level.

Current Time: 05/26 23:19 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
01/29
	23:15	JPY	Manufacturing PMI		30.8	-	29.6
	23:30	JPY	Household Spending	y/y	-0.5%	-3.6%	-4.6%
	23:30	JPY	Tokyo Core CPI	y/y	0.8%	0.6%	0.5%
	23:30	JPY	National Core CPI	y/y	1.0%	0.3%	0.2%
	23:30	JPY	Unemployment Rate		3.9%	4.1%	4.4%