Japanese Yen’s Safe Haven Appeal Still Strong - Forex News by FX Leaders
USD/JPY

Japanese Yen’s Safe Haven Appeal Still Strong

Posted Friday, August 9, 2019 by
Arslan Butt • 1 min read

The Japanese yen continues to gain strength over the escalating US-China trade war, trading close to eight-month highs against the dollar. At the time of writing, USD/JPY is trading at around 105.988, over worries that the prolonged trade tensions could cause more central banks to turn dovish and ease monetary policies.

The safe haven appeal of JPY continues to reign in markets, setting the stage for a second consecutive weekly gain against the US dollar. Investors continue to worry that the trade war between US and China could weaken the global economy.

However, there may be some weakness in the Japanese yen coming over fundamentals. According to a recent Reuters poll, core machinery orders are expected to decline for a second consecutive month in June. Economists are expecting a 1.3% decline in this figure, which is a key indicator of capital expenditure, as the trade war continues to affect the Japanese manufacturing sector.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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