Yen Rises as Investors Divert from Risk

By IBTimes Staff Reporter | April 28 2010 6:08 AM

The Japanese Yen (JPY) traded higher during Tuesday's trading sessions as investors returned to safe-heaven currencies such as the USD and the JPY. As long as unresolved issues, such as European debts, continue to occupy investors, the trend may continue to support the JPY against the EUR and GBP. The JPY might be less bullish against the USD, however. The pair is currently trading at 93.33.

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Retails Sales in Japan, published earlier, signaled strong growth. This was good news for Japan's economy as it continues to try to escape deflation. The JPY today will continue to be influenced by traders' lack of risk appetite as no major news will be published today as it is a bank holiday in Japan.

The Yen is expected to trade neutral during the day. If investors see more ranking warnings they may continue to support the Yen against other major currencies as a part of the risk averse trading environment currently present. The EUR/JPY is currently trading at 123.29, and USD/JPY improved since the day started to 93.30.