A rally in the Asian stock market has caused investors to abandon the safe-haven yen, in favor of riskier currencies like the euro and U.K. pound. EUR/JPY has reached a 2-week high, while GBP/JPY has moved up some 300 pips in the last 24-hours. If the U.S. and Asian stock markets see another bullish day today, traders can expect the Japanese currency to continue to drop.
Additionally, yen values will likely be determined by the European and U.S. economic indicators set to be released throughout the day. Positive news from either Europe or the U.S., will likely cause investors to continue buying up riskier assets. This will likely cause the yen to fall once again. That being said, should the news today voice any concerns about the pace of the global economic recovery, we may see investors return to safe haven assets like the JPY.