Japanese Yen Heads Lower in Currency Trading

Forex trading with the yen

Last week, the Japanese yen saw a bit of a boost in currency trading on the FX market. Repatriation gave a little help, and some serious jitters briefly brought back some of the popularity of the the yen in currency trading. This week, though, optimism seems to be returning to the financial markets, and there is little need for the Japanese yen in currency trading.

In forex trading right now, the yen is falling as the stock market rallies. The Asian session was pretty positive for stocks, and U.S. stocks are generally higher this morning. This is creating some risk appetite, and it is no surprise that the yen is falling in forex trading as a result.

Honestly, this is probably a relief to the Japanese; Japan likes a weaker currency, since it provides an edge for exports. Additionally, during times of global economic slowdown, a weak currency is preferable to a strong one.