Why Is it that the #JPY seen as Safe-Haven Currency?
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.
No problem! Keep the questions coming all, it is how we all improve!
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.
What about CHF? safe haven currency as well?
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.
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