Japanese Yen Forex Trading Forecast

by Trader Rich

Carry trade sinks yen in currency tradingThe Japanese yen forex trading forecast could see more weakness as risk aversion diminishes. The possible sale of Lehman brothers is boosting risk appetite, and that means a return to the carry trade in currency trading.

Indeed, the yen is declining especially against the Australian dollar, as investors set their sights on higher-yielding assets. FX Street reports on the return of the carry trade:

The Australian dollar rose as Asian equities rallied, increasing investors’ appetite for higher-yielding assets. The currency climbed from two-year lows against the yen as Asian stocks gained for the first time in four days on speculation a possible purchase of Lehman Brothers Holdings Inc. will help stabilize markets.