Renewed confidence in the pace of the global economic recovery has caused investors to shy away from the safe-haven Japanese currency, in favor of riskier assets like the Kiwi and British Pound. Against the New Zealand Dollar, the Yen has lost almost 50 pips in the last 24 hours. Currently the pair is trading around 0.7145. Versus Sterling the Yen has faired worse, loosing over 100 pips since yesterday morning. GBP/JPY is currently trading around the 144.60 level.
Whether or not the Yen continues with its bearish trend is largely dependant on the U.S. news scheduled for today. Providing investor confidence is built up around the U.S. economy, the Yen could see some gains in evening trading. That being said, most analysts are not predicting very positive American data today, so JPY traders may want to consider that the currency could be in a prolonged downward cycle.