On Friday Yen hits its highest level against the US dollar in the past four weeks. Yen, which was one of the most purchased currencies in February and March, lost its popularity by mid-April.
Dollar has not been weaker against Yen since the 30th of March, since then it dropped by 0.9%. The main reason for these changes is the fact that China claimed rising of its gold reserves and the fact that China is able to diversify its reserves of foreign assets, though still staying with major world currencies.
Just like the dollar, Euro fell against Yen at the beginning of the week, but only 0.7%, and by the end of the week it again rose by 0.3%.
Most of the investors are awaiting for their moment and expecting the results of stress tests of banks and monitoring the situation at Chrysler.
Nevertheless, trading short positions of Yen was very popular in the past few weeks. Leverage margin trading has also been growing in the past days, but it is very likely that at the beginning of the summer FSA will limit the maximum allowed amount of leverage, making it 20 or 30 times.
On Friday Seven Ministers of Finance are going to meet in Washington, DC. Currency themes are not going to be the most discussed topic there though.