JPY Daily News

Yen Gaining from Risk Aversion; Appears Unstable

Over the past several trading sessions the Japanese yen has appreciated against most of the major currencies due to heightened risk aversion. The yen gained about 300 pips against the euro, and approximately 600 pips against the British pound. Against the US dollar the yen saw a volatile session without a clear trend, but appears to have turned downward against its American rival.

It appears that reports out of Japan regarding its recovery from a recent earthquake and tsunami, which has almost brought one of its nuclear facilities to a catastrophic meltdown, is driving investors to reassess the risk exposure in their portfolios. Without positive data from various global economies, it doesn't seem likely that the Japanese market will recover in a hasty manner. The yen appears poised for sharp gains while Japanese stocks and indices plummet from a capital shift.

Looking ahead to this week, traders are advised to follow the major economic publications from the US and the euro-zone, and to take under consideration that positive data might increase risk appetite, and as a result erase the yen's gains from the past week.

Current Time: 05/27 04:17 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
03/16
	05:00	JPY	BoJ Monthly Report		*	*	*
	23:50	JPY	Tertiary Industry Activity	m/m	-0.8%	1.5%	-