Yen-selling worsened by position unwinding

According to the latest Forex news- On Monday the Yen fell broadly after the news that North Korea carried out a nuclear test and a report that it had fired a short-range missile, with traders saying its fall was exaggerated by position unwinding.

The Yen showed slight initial response on Monday to the news that North Korea had carried out a nuclear test, but Yen-selling boosted up after South Korea's Yonhap news said North Korea had fired a short-range missile.

News about North Korea could be seen as being negative for the Yen given Japan's geographical propinquity to North Korea some market players said.

A trader for a major Japanese trading house said-"That provided the trigger, but one factor is that there had been some short-term long positions in the Yen.”

The trader also said that the Yen is being forced by the cutting of some loss-making positions. On Friday the USD rose 0.4 % to 95.11 Yen, drawing away from a 2 month low of 93.85 Yen on trading platform EBS.