On Thursday the US dollar declined to two-and-a-half month low against the Japanese yen, as wide-spread risk aversion appeared and safe haven in yen was bolstered.
Minutes ago, USD/JPY hit the session low at 93.77, the lowest value since April 4th, after which consolidation followed at 94.00. The cross was more than 2% down for the day. Yens three-day advance by 5% is set to be the largest since October 2008. Support was expected at April 4th low, 92.72, while resistance was to be met at current session high, 96.09.
US dollar’s volatility against the Japanese currency climbed to the highest in more than two years before US Retail Sales data, that could provide more clarity about when the Federal Reserve Bank will scale back its stimulus program. Additionally, Japanese money managers sold 386.9 billion JPY of foreign bonds and 221.8 billion JPY of overseas stocks in the week ending on June 7th, according to reports released today by the Ministry of Finance in Tokyo.
Japan’s Nikkei 225 Stock Average of shares plunged by 6.4%, the indexs third decline of more than 5% in the past month. Historic volatility has reached levels unseen since the earthquake and nuclear disaster in 2011.
“Japanese stocks are back to levels last seen when the Bank of Japan announced stimulus measures on April 4 and the yen is doing almost exactly the same,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London, cited by Bloomberg.
Meanwhile, the euro also slid to eight-week low against the Japanese yen, with EUR/JPY pair down by 1.80% to 125.69.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
