Yen Rallies For a Brief Period of Time

The Yen is considered as the safe haven currency if something in the US or EU goes haywire. With the looming US stock market decline investors are searching for a safe haven. As Gold turned out to be not so much of a safe haven during this dip, market participants fled to the Japanese Yen in search of safety.

The Yen registered a few sharp rises against the dollar in the past two weeks. USD/JPY went from 110.48 in early Feb to a low of 108.44 just a few days after. Then the US market appeared to be stabilizing and the USD/JPY appreciated to 109.77 as investors started buying US dollars.

A new low followed this time at 108.05. Now the Yen appears to be caught somewhere in between as it's trading at 108.67. If the US stock market remains uncertain, as it will mostly be, the Yen could see new highs against major competitors.

On the other hand, current market price is a good entry level for a long position with a tight stop somewhere around latest low.

Chart: USD/JPY H4