The yen's appeal as a safe-haven asset led to gains in overnight trading against riskier currencies like the euro and UK pound. The EUR/JPY is currently down well over 100 pips from yesterday afternoon and is trading at 112.60. Meanwhile, the GBP/JPY has dropped around 95 pips in the same amount of time, and is currently trading around 132.90.
The combination of poor global economic indicators and the continuous uncertainties in the Middle East have caused investors to revert to less volatile currencies like the yen. While there are no significant economic releases out of Japan today, yen traders will want to continue to keep up to date about the situation in Libya. Further violence in the country is likely to continue to drive investors toward the yen.