Japanese yen is gaining against the euro and the pound today, thanks to renewed fears about what’s next for Europe. Yen is lower against the US dollar, though, thanks in part to the re-emergence of the trade deficit in Japan. As long as concerns about Europe, and the banking industry, remain, yen is likely to find some strength against European currencies.

Japanese yen has long been considered a safe haven currency. It is seen as remarkably stable, and Forex traders favor it when times are tough. Right now, with concerns about Europe mounting — even as German Chancellor Angela Merkel and ECB President Mario Draghi try to calm the markets — it is little surprise that the euro and the pound are lower against the yen. Concerns about banks in Europe would, of course, influence the euro. At the same time, Britain’s exposure to European banking means that the pound is also affected. Risk aversion is an issue today.

Against the US dollar, though, the yen is lower (and that’s the way Japanese leaders like it). Part of the reason is due to the trade deficit that has made an appearance. For the first time in more than 30 years, Japan has a trade deficit. The recent appreciations to the yen have slowed exports, and of course, exports are even more obstructed by concerns about another global economic slowdown.

At 15:50 GMT USD/JPY is higher at 76.9550, up from the open at 1.5484. EUR/JPY is lower at 97.6830, down from the open at 98.1955. GBP/JPY is down to 118.1910 from the open at 119.0050.

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