September 27, 2012
And the yen scores again! The Japanese currency was able to benefit from risk aversion for another day as it was able to end higher against all of its major counterparts, including the safe-haven U.S. dollar. USD/JPY closed at 77.72 after starting the day at 77.80. Can the yen hold on to its recent gains and go for more?
Japan didn't release any economic reports yesterday as risk sentiment drove price action among yen pairs. Weaker than expected U.S. data, combined with bleaker prospects for the euro zone, kept risk-taking at bay and propped up the lower-yielding yen.
There are no reports due from Japan today, which means that the yen pairs could continue to move to the tune of risk sentiment. If we see another round of weaker than expected data or if we hear of negative developments in the euro zone, the Japanese yen just might chalk up another winning day!
"The only cable I watch is the pound baby."