Japanese Yen Finds Favor as Safe Haven Appeal Heightens Over Tensions in the Middle East - Forex News by FX Leaders
USD/JPY - US dollar vs. Japanese yen

Japanese Yen Finds Favor as Safe Haven Appeal Heightens Over Tensions in the Middle East

Posted Friday, January 3, 2020 by
Arslan Butt • 1 min read

After weakening for several days over an improvement in market sentiment, the Japanese yen has surged to a nine-week high against the US dollar early on Friday over news of US-led airstrikes in the Middle East. At the time of writing, USD/JPY is trading around 108.06.

The safe haven appeal of the Japanese yen is back in focus over rising geopolitical tensions in the Middle East after US launched fresh airstrikes earlier today, taking out key personnel of Iran’s military and the militia. USD/JPY is trading at the lowest level seen since November following these latest developments.

Japanese markets are closed today on account of a holiday, heightening the volatility and exaggerating the moves of the yen against the dollar. Over the past few weeks, the Japanese yen’s safe haven appeal had been waning over positive developments in the US-China trade war towards finalizing and signing the phase one agreement.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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