Why Is the Japanese Yen seen as Safe-Haven Currency?

flashsolver
flashsolver

Why Is it that the #JPY seen as Safe-Haven Currency?

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  • JoshWinter
    JoshWinter
    Posts: 442

    Great Question, @flashsolver.

    The #YEN is considered a safe haven mostly because Japanese investors and traders own more foreign assets than foreign traders own of Japanese assets. The Japanese is one of or is the largest creditor in the world as well. The Japanese Yen is also free floating, where some other Countries Currencies are pegged to the dollar $dxy.

    So when the Indexes sell-off investors usually go and buy the Yen. So when they are fearful that is when you will see them short USD/JPY, AUD/JPY, and a few other JPY crosses.

    Always a Student. B)
  • flashsolver
    flashsolver
    Posts: 61

    @JoshWinter Thanks :)

  • JoshWinter
    JoshWinter
    Posts: 442

    No problem! Keep the questions coming all, it is how we all improve!

    Always a Student. B)
  • boscoyong
    boscoyong
    Posts: 4

    i love usd jpy because floating not much in a day, the average direction is 109.6-111.5.
    the lowest direction is about 78.000, the highest is about 121.000, so i think is the most suitable for new traders. i`m also a new trader. Thanks for advise me.

  • JoshWinter
    JoshWinter
    Posts: 442

    :)

    Always a Student. B)
  • cptrading_teeks
    cptrading_teeks
    Posts: 3

    What about CHF? safe haven currency as well?

  • JoshWinter
    JoshWinter
    Posts: 442

    Good question. CHF is still somewhat considered a safe-haven as well. But when they defended their currency back in 2015 there was a major flash-crash that occurred. So some investors may not be willing to deal with that type of risk again.

    Always a Student. B)
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