The Japanese yen fell against most of the major currencies during yesterday's trading session. The JPY fell to nearly an 11-month low vs. the euro and also dropped about 150 pips against the British pound.
The yen dropped against most of the major currencies following a report that measures the cost of insuring against losses in the Standard & Poor's 500 Index fell to its lowest level since May. In addition, the recent positive data from the US and euro zone have boosted risk appetite in the market, and turned investors to look for riskier assets, such as the euro and the pound.
While the Yen is considered to be a relatively safe investment, in times of market optimism, the Japanese currency tends to weaken against the major currencies.
As for today, traders are advised to follow the Japanese equity markets. Traders should notice that the yen tends to drop while Japanese equities rises, as such rises usually indicate that the economy is recovering, and boosts demand for riskier assets as a result.