JPY Daily News

Yen Reaches 4-Weeks High versus the Dollar on Risk Aversion

The Yen rose to a 4-week high against the Dollar during yesterday's trading session. The Yen gained about 80 pips vs. the Dollar yesterday, and the USD/JPY pair is currently trading near the 89.90 level.

The Yen extended its profits against the Dollar after the Federal Reserve announced its intention to keep Interest Rates steady at a record low. The Fed also pledged to keep rates low for an extended period. In addition, the poor housing data which was published from the U.S. economy have also supported the Yen. The disappointing U.S New Home Sales for May has boosted risk-aversion in the market, and turned investors to look for safer assets, such as the Yen. The concerns regarding the U.S. economy's recovery have supported the Yen, as the Yen is considered to be the safest currency at the moment. For as long as the U.S. and the Euro-Zone will continue to provide dissipating data, the Yen may rise further.

As for today, traders are advised to follow the Tokyo Core Consumer Price Index (CPI). This report is considered to be one of the most reliable inflation indicators in Japan and the results tend to have in impact on the market. Analysts have forecasted that Japanese CPI has dropped by 1.5% during June. If the actual result will be similar, the Yen might drop against the major currencies.

Current Time: 05/27 04:54 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
06/24
	00:30	JPY	Tokyo Core CPI	y/y	-1.6%	-1.5%	-1.3
	00:30	JPY	National Core CPI	y/y	-1.5%	-1.3%	-1.2%