Absence of Bad News Sends Yen Lower

The U.S. Dollar rose against the Japanese Yen in Tokyo trading today as pension fund operators in Japan, as well as Japanese importers, bought the greenback heavily. As reported at 3:04 p.m. (JST) in Tokyo, the U.S. Dollar was trading against the Yen at 84.04 Yen, up from the 83.59 Yen in New York trading late Tuesday. Earlier in the session, the Dollar had slipped close to the 200-month moving average of 83.50 Yen. The Euro was also higher against the Yen, trading at 121.67 Yen on the EBS trading platform, up from the 120.98 Yen trade late in New York yesterday.

The Japanese Yen had been sent soaring in yesterday’s trade as safe haven investors pushed the currency higher following the announcement by the Japan Nuclear and Industrial Safety Agency that they had raised the threat rating of the Fukushima nuclear plant accident to a level equivalent to that of Chernobyl.

Today’s absence of bad news, generally, is apparently driving risk appetite higher, sending the Yen lower again. Most analysts agree that the USD/JPY will be testing the upside for the near term.

Later today, focus should shift to the U.S. where retail sales data is expected to be released; further on in the global day, the U.S. Federal Reserve’s Beige Book update will also be released, providing a behind-the-scenes indication of the U.S. economy’s direction. The U.S. Dollar Index, a gauge of the greenback’s value versus other major currencies, was recently at 79.906 .DXY, up from 74.863 .DXYxforex
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