Japanese Yen Climbs to Fresh Highs on Euro Escape - 4.6.2012

The Japanese Yen has been strengthening against its major peers in the last trading sessions as investors were running to safety with Euro losing extensively, and euro-zone crisis getting into unknown territory. Against the US dollar the Japanese Yen climbed to record levels as well and investors are thinking that an intervention from the Bank of Japan will not stop the Yen. However, last year BOJ sold 14.3 trillion yen to weaken its currency after the earthquake and the previous week officials stated that they are ready to take further action to prevent hurting Japan’s economic recovery from a stronger Yen. Bank of Japan Masaaki Shirakawa said in a forum today “We’ve been monitoring the recent appreciation of the yen… from the viewpoint of how it affects the economy…”

The Euro against the Japanese Yen depreciated by approximately 10 per cent in May and fell from 106.44 level to the 96.13 support level a more than 10-year low. At the moment the EUR/JPY at the hourly timeframe is trading in a range formation between the 97.21 resistance level and the 96.13 support level. The US dollar after falling to 78.012 low against the Yen on Friday and been volatile during the Non-Farm Payrolls announcement, it remain in sideways. The forex pair on Monday has been trading around the recent lows struggling to keep its ground as investors risk appetite is reducing.