The JPY climbed against its major currency pairs yesterday, as its safe-haven status returned to the forefront. This was in response to the release of worse-than-forecast U.S. Empire State Manufacturing Index results, and Japanese and global stock markets falling yesterday. Thus risks for the financial system led to a cut in risk appetite, resulting in traders selling-off stocks, commodities, and bonds, and buying-up safe-haven currencies, such as the JPY and USD.

The JPY climbed against the Dollar by about 130 pips to close at 96.99. The JPY rose to a 2-week high against the EUR, to finish higher by a massive 350 pips at the 133.85 level. The GBP/JPY rate fell by nearly 400 pips, marking a correction to the pairs several week bullish run. The Yen's behavior yesterday reminds investors that you can never underestimate the Yen. The JPY is set to move today on the release of data from the U.S. and Europe.