Forex trends: yen hits multi-day lows

image During Tuesday early Asian session, the Japanese yen slumped to a 4-day low against its key counterparts as a gain in most Asian stocks prompted investors to borrow money from Japan to buy higher-yielding assets.

The Japanese stock market rallied higher during Tuesday early trades. The benchmark Nikkei 225 index is currently up 23.78 points or 0.23% at 10,225.84. On Monday, the Nikkei had shed more than 2%, dragged down by banks and exporters on concerns about the stability of the global financial sector and strengthening of the local currency against the US dollar.

The yen that closed yesterday’s trading at 90.96 against the U.S. dollar fell to a 4-day low of 91.22 in early Asian deals on Tuesday. The next downside target level for the yen is seen at 92.3.

During early Asian deals on Tuesday, the yen slipped to a 4-day low of 151.54 against the pound and 88.16 against the Swiss franc. If the yen weakens further, it may likely target 153.2 against the pound and 88.7 against the franc. The GBP/JPY and the CHF/JPY pairs were worth 150.79 and 87.94, respectively at yesterday’s close.

The yen declined to a 4-day low of 133.35 against the euro during early Asian deals on Tuesday. On the downside, 134.4 is seen as the next target level for the Japanese currency. At yesterday’s close, the EUR/JPY pair was quoted at 132.99.


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