Yen Opens Higher on Risk aversion

Yen is gaining across the board on Monday’s first trading session as investors once again pressure towards safe haven currencies.

AUDJPY is trading under 56 this morning, pushing to test its 8 years low at 55. We have a lot to expect this week from Australia concerning reports - Trade Balance, Rate Statement, Building Approvals are all important releases that are due later this week with potential to create some volatility.

The Euro and British Pound are also trading lower against the dollar :
GBPUSD has already returned gains from last Friday, falling from 1.4550 to 1.42 this morning- the one major support area is at 1.4 if the pair can find sellers under it, it may accelerate its drop further. However, the buyers are still out there hoping to keep the pair well above 1.4 this week.

The Euro is trading lower ahead of an expected interest rate statement later this week.
At this moment the ECB is expected to keep interest rates on hold, a decision that makes many investors uneasy as they fear the ECB is not aggressive enough concerning interest rates. This creates additional selling pressure on the Euro besides the obvious safety run towards the Dollar.

We are in the midst of another risk aversion cycle- but we can expect a lot of new developments during the week that can eventfully move the market in any direction.