FXstreet.com (London) - Japanese Yen trading tightly rangebound in a slow Asian session today, with investors looking for market-moving cues from the US and Europe. Yen opened at 88.39 versus the dollar and now trades at 88.38, virtually unchanged on the day.
USD/JPY was the only pair not to weaken significantly against Dollar yesterday, as it rallied. Market worries over Dubia resurfaced as Greece was marked down by ratings agencies.
Yen strength in the face of crisis comes largely from its place as a major funding currency for the carry trade, due to minimal interest rates, and its export industry. A biased trade balance as a major exporter means Japan is less reliant on Foreign Capital due to constant inflows.
In the case of breakout pre-London open Valeria Bednarik, collaborator at FXStreet.com, points us to the moving averages as useful indicators in this insightful technical report.