Japanese Yen Surges as Risky Aversion Returns

The Japanese Yen has surged nearly 2% on average against the spectrum of forex majors since the beginning of the week as risk aversion returned to global financial markets, sending stock prices lower and boosting demand for the safety-linked currency. Technical positioning points to further losses for share prices and a -84.4% inverse correlation between the Yen’s average trade-weighted value and the MSCI World Stock Index suggests the Japanese unit will continue to capitalize. Which currency pairs will offer the best way to play the forthcoming push higher? Our DailyFX team weighs in and offers their top JPY-based trading strategies.

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