The Japanese yen rose against the dollar, but fell versus the euro today as sentiment about the situation in Europe improved after Spain and Greece successfully auctioned their debt, reducing demand for safer currencies.

The Japanese yen fluctuated, demonstrating a downside bias, as today’s reports from the United States are expected to be mixed. The yen slid versus the euro today on signs of stabilizing economic situation in Europe.

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.

Risk appetite is making an appearance as investors show optimism through higher stocks. As a result, the US dollar is mostly lower against other majors today. Greenback is lower against the euro, pound and yen today.

The Japanese yen dropped today against the euro as Germany’s leader meets the head of the International Monetary Fund to discuss the ongoing issues of the European Union and possible ways to resolve the credit problems.

Yesterday, UK pound gained solidly against the euro, but today some of those gains are being given back. UK pound is lower on a combination of risk aversion, as well as concerns as British politicians consider the effects of British isolation from the rest of the eurozone.

Euro has plummeted below the 1.28 level against the US dollar today as concerns pile up. The latest French bond auction saw higher borrowing costs, and there are renewed concerns about a credit rating downgrade for country. On top of that, Italian banking weakness remains.

Yesterday’s enthusiasm has largely disappeared and risk aversion is back in fashion on the Forex market. US dollar is gaining against high beta currencies today as attention turns back to the troubles in Europe.

Japanese yen continues to gain in Forex trading. Indeed, yen closed out 2011 at highs not seen for years — and not seen for a decade in the case of the euro. Japanese yen is in demand as continued global uncertainty sends traders looking for safe haven.

Euro is fluctuating between gains and losses against the US dollar today in forex trading. The 17-nation European currency is looking for direction as forex traders prepare to close out positions as the year draws to a close.