Victoria Bazir
The Japanese yen weakened sharply across the Forex market as traders returned to carry-trade positioning and risk-sensitive currencies.
JPY fell against every major currency:
- GBP/JPY +0.63%
- AUD/JPY +0.59%
- EUR/JPY +0.55%
- NZD/JPY +0.53%
- USD/JPY +0.33%
The move points to broad yen weakness rather than isolated pair activity.
AUD/JPY became one of the strongest pairs of the session as the Australian dollar gained across the board:
- AUD/USD +0.54%
- AUD/EUR +0.45%
- AUD/CHF +0.43%
The market is again favoring higher-yielding currencies while the Bank of Japan remains significantly more dovish than other major central banks. Low Japanese yields continue to make the yen a preferred funding currency for carry trades.
At the same time, traders rotated out of safe-haven assets. Both JPY and CHF underperformed while AUD and NZD attracted inflows, reinforcing the broader risk-on sentiment in FX markets.
USD/JPY also moved higher, but the dollar itself lagged behind AUD and GBP against other currencies, showing the session was driven primarily by yen weakness.
If current momentum continues, AUD/JPY, GBP/JPY, and USD/JPY may remain the key pairs to watch as carry-trade flows return to the market.
Victoria Bazir
