Forex

The JPY saw mixed results against most of its major currency rivals. Vs. the greenback the Yen had a very volatile session as the pair tested bids around the 106.78 level and capped out at around 106.04. Against the EUR, the JPY was 168.20 down from 168.52 in the day prior.

Overall, the Yen rises broadly amid global stock rout. On Tuesday, the Japanese currency benefited from mounting risk aversion as heightened fears of further losses in the banking sector and global stocks prompted investors to sell dollars. However the JPY gains versus the dollar were limited as the balance now shifted to the Crude Oil's side. In stead of buying Yen, people now prefer the Crude as their safe heaven. Risk aversion in currency markets was also stoked by a slide in global stocks. The JPY tends to garner support in times of heightened risk aversion as investors reverse trades financed by borrowing the Japanese currency at low interest rates.

Today, there is no economic news expected to be released From Japan, however, we should see an active JPY trading in response to key U.S and Euro-zone data releases. The near term outlook for the JPY remains quite bullish as a U.S economic redemption is unlikely to occur anytime soon. Therefore, traders are advised to follow U.S data and Euro Zone news with extra precaution today as they will mark future's JPY behavior