Yen Stops Growth on Stock Markets Optimism

The Japanese yen is showing another negative trading day this week as the currency traders follow the stock market optimism and buy the currencies associated with the high risk and yield.

The yen fell against the Australian and New Zealand dollars (its traditional carry trade counterparts) as the U.S. government and lawmakers are ready to bailout the Detroit automakers, spurring stock market rally and helping the high-yielding assets worldwide.

While the crisis is not over yet, the currencies and assets are already heavily oversold according to some analysts. There are good opportunities in Forex market that involve yen-selling in the favor of the high interest rate currencies. When the majority of the market participants understands that the runaway to the «save haven» is over the rallies on EUR/JPY and GBP/JPY will probably start.

USD/JPY rose from 92.28 to 92.80 as of 15:33 GMT today. EUR/JPY advanced from 119.27 to 120.91 coming close to its monthly high at 121.44, while GBP/JPY went up from 136.11 to 137.75 today.