Yen’s Downtrend Continues Relentlessly

The Japanese Yen was broadly lower during Friday’s Asian trading session, posting the largest monthly drop against the Euro in more than a decade as investors ready themselves for the Bank of Japan’s aggressive easing measures. As reported at 1:41 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 91.84 Yen, a gain of 0.2% but edging off the June 2010 peak of 91.87 Yen earlier struck on the EBS trading platform. Analysts expect further degradation of the Japanese currency and the strong possibility that the dollar could eventually rise to 100.00 Yen, which the Japanese government has said that they have absolutely no opposition to. The EUR/JPY pair edged 0.4% higher to trade at 124.97 Yen, only a few pips from the May 2010 high price of 125.05 Yen; this month the Euro has risen almost 9%, the largest single monthly rise in more than 12 years.

Meanwhile, after breaking through an option’s barrier, The Euro also recently struck a 14-month peak versus the greenback. The Euro has become an attractive option to investors over the safe haven currencies as worries fade over the Eurozone debt crisis and given the European Central Bank’s improved economic outlook. The EUR/USD pair was trading at $1.3609, a gain of 0.2% and edging off an earlier peak of $1.3624, a level not seen in more than 12 months.