Euro vs. Japanese Yen
Known for being a low-yielding currency, the Yen makes an ideal fund for carry trades. At low Japanese rates, traders purchase higher-yielding currencies, EUR included. During times of international economic stability and performance, optimistic investors generally prefer carry trades. Investors do the opposite and avoid them when the market is under stress. In widely-based market sentiment trends, the EUR/JPY is susceptible to fluctuations. The pair might similarly find unpredictability in information trends relevant to anti-deflation policy efforts from the Bank of Japan, as well as the Eurozone debt crisis.