Forex: Yen consolidates gains across the board

Fri, Nov 6 2009, 19:18 GMT
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FXstreet.com (Córdoba) – The Yen is posting important gains across the board on Friday. The Japanese currency started to rally after the Non-farm payrolls data. USD/JPY is steady and trades around 89.82/85, 0.95% below today’s opening price. The pair tumbled almost a hundred pips since the announcement of the U.S. unemployment data as it fell to 89.60 (intra-day low).

Against European currencies the yen trades near the lows of the day. GBP/JPY failed to hold above 150.00 and fell to 148.40, daily low. Currently the pair trades at 149.15, 0.85% below today’s opening price. EUR/JPY is falling further as it trades 1.20% below the price it had at the beginning of the day. The pair is testing the lows of the day at the 133.20 zone.

Michael J. Malpede, analyst at Easy Forex comments: “JPY traded sharply higher supported by a spike in risk aversion as equities markets decline in reaction to a report of worse than expected US October unemployment. The US unemployment data generates concern about the outlook for US recovery and may reduce demand for high risk assets. JPY was also supported by report that Japans September leading indicators rose 3.2 points and the coincident indicator rose 1.3 points. The rise in Japans leading indicators is another sign that Japan's economy is recovering. A record rise in the price of gold also contributed to dollar selling pressure.”

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