| Forex News Center | | | JPY News Archive |
JPY Daily News
Yen Falls as Carry Trade Resumes
As traders continue to search for increased yields, they have turned to funding their trades with the low yielding yen. In addition to the G7 intervention, a return of the carry trade has helped to drive the yen lower following its sharp appreciation during the middle of March following the earthquake and tsunami.
The yen has been on its back foot versus the euro with the EUR/JPY rising to a new high in early European trading. The pair is currently trading up at 117.45 from 116.82. Versus the dollar, the USD/JPY is up at 82.80 from 82.66.
The Japanese currency is now trading at its weakest point since the G7 intervened in the FX markets. It appears traders have been positioned out of long yen trades by the unilateral intervention. Also improved risk sentiment is helping as traders unwind risk-off trades from the previous two weeks and are moving into carry trades which support a weaker yen.
USD/JPY resistance is found at 83.30. This level has extra significance as it coincides with a falling trend line off of the September 2010 high. A breach of this level would then target 84.00. To the downside, support is at 82.00 and 81.60.
Add events to google calendar
Mark all
Unmark all
Print| # | Time | $€£¥ | Event | Per. | Prev. | Fore. | Act. | Imp. |
|---|---|---|---|---|---|---|---|---|
| 03/31 | ||||||||
| 02:30 | JPY |  Average Cash Earnings | y/y | 0.2% | 0.3% | 0.3% |  | |
| 06:00 | JPY | Housing Starts | y/y | 2.7% | 7.7% | 10.1% |  | |
| 00:50 | JPY | Tankan Manufacturing Index | 5 | 6 | 6 |  | ||
| 00:50 | JPY | Tankan Non-Manufacturing Index | 1 | 2 | 3 | | ||
