The Japanese yen has made strong gains against all of its currency rivals these past few trading days. This growth is likely due to the sudden spike in risk aversion, similar to the growth being witnessed in the US dollar currently. Market forecasts, which have been consistently predicting a global slow-down, have scared investors away from riskier assets and back into the safety of the dollar and yen.
The result of this risk flight has been to pull the JPY in the direction of record highs against its counterparts, which only increases the possibilities of a Bank of Japan (BOJ) intervention. Speculation is running high at the moment, but with little news being released from Japan speculation seems to be the only game in town. For the time being, risk aversion and the safe-haven status of the yen appear to be in control of the JPY's value.