Early on Thursday, the US dollar made some gains against the Japanese yen as the safe haven appeal came down briefly, but the yen is now back in favor again. At the time of writing, USD/JPY is trading at around 105.89.

However, volatility continues to remain high over increased uncertainties in the markets surrounding the US-China trade war. The bullishness could just be a brief respite as recession worries continue to plague global financial markets.

US bond yields inverted once again on Wednesday with the 30-year US Treasury yields falling under 2%, to its lowest levels ever. Weakening inflation and a potential slowdown in the US economy continue to concern traders that the US economy could be heading towards a recession.

After losing 0.3% in trading during the previous day, USD/JPY is currently trading steady. Even US Treasury Secretary Steven Mnuchin’s remarks about not intervening in the US dollar currently failed to make much of an impact on forex markets.