Yen Advances Amid Risk Aversion

My FX Forum

Staff member
The Japanese yen traded higher against its major counterparts in the European session on Tuesday amid risk aversion, as worries over Italy's budget, Brexit talks and Saudi tensions kept investors' nervous.

Market participants are concerned about the diplomatic tensions in Saudi Arabia following the alleged killing of journalist Jamal Khashoggi at a consulate in Turkey earlier this month. The Italian budget is another major concern and investors will also be closely following the developments on Brexit.

Investors are also cautious as they focus on several upcoming corporate earnings results due this week.

The currency has been trading higher against its major rivals in the Asian session.

The yen advanced to near a 2-week high of 79.32 against the aussie, from a low of 79.91 hit at 5:30 pm ET. The yen is seen finding resistance around the 78.00 level.

The yen strengthened to 4-day highs of 73.49 against the kiwi, 112.31 against the greenback and 128.60 against the euro, off its early lows of 73.99, 112.84 and 129.38, respectively. The next possible resistance for the yen is seen around 72.00 against the kiwi, 110.00 against the greenback and 127.00 against the euro.

The yen reversed from an early low of 113.30 against the Swiss franc, rising to 112.75. If the yen rises further, it may find resistance around the 111.00 level.

On the flip side, the yen retreated to 146.16 against the pound, from near a 6-week low of 145.47 hit at 2:15 am ET. On the downside, 148.00 is possibly seen as the next support level for the yen.

Looking ahead, at 10:00 am ET, Eurozone consumer sentiment for October is due.

At the same time, Richmond Fed manufacturing index for October is set for release.

At 11:20 am ET, the Bank of England Governor Mark Carney speaks about artificial intelligence and the world economy at the Annual Machine Learning and the Market for Intelligence Conference in Toronto.

Federal Reserve Bank of Atlanta President Raphael Bostic speaks about the economy and monetary policy at Louisiana State University in Baton Rouge at 1:30 pm ET.