The Japanese Yen appears to have steadied off as we progress within the European session, with the USDJPY pair trading around the 81.92, slightly lower from the 82.14 level at which it traded for most of the latter part of the Asian session.
The USDJPY experienced high volatility, as was expected, in today’s opening session, opening at 81.67 and dropping some 104 pips to a low of 80.61, some 31 pips above its all time low of 80.30 that was reached on November 1st of last year.
The drop of the currency pair is believed to be associated with the fact that further to the worry of a nuclear meltdown brought on by the recent devastating events of an earthquake and tsunami, Japanese investors were to dump their overseas assets and bring Yen back into Japan in aid of the currency for reconstruction. The recent crisis in Japan is believed to be the worst the country has suffered since World War 2 with some estimating the cost of reconstruction to more than $30 billion.
