The Japanese yen rose during Asian market trading on Tuesday against a basket of major and minor currencies, continuing its gains for the second day in a row against the US dollar, approaching its highest level in six weeks again, amid risk aversion, focusing on buying low-yielding currencies, due to fears of chaos in the presidential elections in the United States.

This also comes amid speculation that the Bank of Japan will conduct a new round of foreign exchange intervention to support the local currency, taking advantage of weak liquidity and declining demand for the US currency. Price outlook

Japanese Yen exchange rate today: The dollar fell against the yen by more than 0.3% to (156.52¥), from the opening price of today’s trading at (157.00¥), and recorded its highest level at (157.10¥).

The Japanese yen rose 0.25% against the US dollar yesterday, Monday, resuming its gains that stopped for two days, as part of corrections and profit-taking operations from the highest level in six weeks at 155.37 yen per dollar.

The yen rose by about 0.35% last week against the dollar, its third consecutive weekly gain, due to the Bank of Japan's intervention in the foreign exchange market.

risk aversion

Risk appetite in the foreign exchange market has been somewhat reduced early this week, due to concerns over the chaos of the US presidential election, after US President Joe Biden dropped out of the race and announced his support for his vice president Kamala Harris (NYSE:LHX) as the Democratic Party’s candidate in the November elections. Bank of Japan intervention Traders said that the yen’s movements this week bear the hallmarks of further intervention by the Bank of Japan in the foreign exchange market, waiting for the release of the central bank’s daily operations data to confirm the reality of this intervention.

The Bank of Japan spent about 6 trillion yen ($35 billion) on Thursday and Friday, July 11-12, less than three months after its last intervention in the foreign exchange market, daily operations data from the central bank showed last week.

The Bank of Japan intervened in late April and early May, spending about 9.8 trillion yen ($61.55 billion) to support the currency. There will be a report at the end of the month from the Ministry of Finance that will confirm the amount spent on the new intervention.

Japanese Yen Performance Forecast

•We here at FX News Today expect the yen to continue moving in positive territory against the US dollar, especially if the Bank of Japan data shows new intervention in the foreign exchange market.