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Japanese Yen Trades Mixed

October 3, 2013 at 15:23 by Miranda Marquit

1,000 yenJapanese yen is trading mixed today as concerns about what’s next for the United States takes center stage. News out of Japan is also affecting the Forex market, but mostly the focus is on the United States and the eurozone.

Japan had a brief moment in the spotlight earlier this week. Prime Minister Shinzo Abe announced that Japan’s sales tax would be raised next year. The idea is to boost the sales tax in an effort to tackle the large amount of government debt that stimulus efforts have caused. Abe believes that Japan’s economy is sufficiently advanced (or that it will be by early next year) to be able to handle the slowing that is likely once the sales tax increase hits.

For now, though, most Forex traders have moved past Japan. Instead, the focus is on the United States and the battle over the budget. The government is in shutdown over the Republicans’ insistence that the PPACA be de-funded. Even if this battle is resolved, there is still a debt ceiling battle coming. That is providing the yen with support against the dollar.

At 15:21 GMT USD/JPY is down to 97.2340 from the open at 97.3520. EUR/JPY is up to 132.5375 from the open at 132.1850. GBP/JPY is down to 157.3000 from the open at 157.9300.

If you have any questions, comments, or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

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