On Thursday, the USD/JPY pair dropped significantly under the pressure of aggregated news from the take-off of oil prices to the war between the Saudis and Yemen.
The Japanese yen seems to be regaining its safe status, the same "safe haven" as before. The USD/JPY pair falls for the fifth straight session and this morning the sales are more than significant. Now the instrument is trading at 118.47.
Interestingly, the yen is growing not only in tandem with the US dollar, but also against other instruments. Investors are buying into relatively safe assets after the news that Saudi Arabia has started a war with Yemen, starting to bomb rebel positions. In general, this opposition is not sensational news, especially since the Yemeni President himself addressed the Saudis with a similar request. We are talking about the positions of Shiite Huthis.
It seems that as soon as the world will know nuances of this operation, the market panic will subside. It always has been this way - when at some point in the Middle East a "fire of freedom" lights up, the stock markets immediately comes into a state of excitement.
For the Japanese yen, these market movements are now even "a plus". After a rapid weakening of the positions the JPY really needed an excuse for a "healthy" recovery.
RoboForex Analytical Department