Convert USD to JPY
The Japanese yen gains strength when markets undergo risk aversion. In the past, during the financial crisis back in 2008-09 and during the Brexit vote in 2016, the JPY appreciated significantly. When markets trade with a risk-on sentiment, investors move away from the safety of the Japanese yen and towards riskier assets.
USD/JPY shares a negative correlation with gold, as the Japanese yen is also considered a safe haven instrument like gold. On the other hand, this forex pair is positively correlated with USD/CHF as the Swiss Franc is another safe haven currency traders turn to in times of high uncertainty.
The highest level USD/JPY touched so far this year was on 19 March 2020 when it rose to 111.27. The currency pair surged as the US dollar strengthened as a safe haven currency during the beginning of the coronavirus pandemic.