JPY Daily News

Yen Rallies as Risk Aversion Increases

The Japanese yen rose against most of its major counterparts during Tuesday's trading. The yen gained about 200 pips vs. the euro, and the EUR/JPY pair fell to a two-month low. The yen gained about 200 pips against the British pound and about 100 pips against the U.S. dollar as well.

The yen rallied yesterday as North and South Korea exchanged artillery fire, and enhanced the already high uncertainty in the market. This has boosted demand for safe-haven currencies and the yen surged as a result. Adding to the equation the Irish turmoil and its possible effect on the entire region, the market seeks relatively safe assets, and the yen qualifies for the category. It currently seems that as long as uncertainty continues to dominate markets, the yen might see further bullishness.

As for today, traders are advised to follow all updates regarding the Korean tension and the Irish debt crisis, as these issues are likely to have the largest impact on yen's trading. Traders should also follow the Japanese Trade Balance release, as a positive end result might support the yen further against its major rivals.

Current Time: 05/27 04:48 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
11/24
	23:50	JPY	Trade Balance		0.59T	0.63T	0.58T
	23:50	JPY	CSPI	y/y	-1.1%	-1.0%	-1.2%