Like the Dollar, the Yen has largely retained gains made throughout the most recent trading sessions. Against riskier currencies like the Euro and British Pound, the Japanese currency has remained strong. EUR/JPY fell almost 200 pips throughout the day yesterday before staging a mild recovery. GBP/JPY was trading as high 130.50 before dropping to 129.36 last night. Currently the pair has bounced back and is hovering around 129.80.
Today, analysts are predicting the Yen to have a strong day, as Euro concerns continue to dominate the news cycle. With no realistic long term solutions for the European deficit crisis on the horizon, traders can expect the JPY to retain its safe-haven status, and as such move up alongside the greenback throughout the day.