The safe haven currency Japanese yen continues to strengthen against the US dollar at the start of a fresh trading week over the rising death toll caused by the coronavirus outbreak, which has since spread to other countries as well. At the time of writing, USD/JPY is trading around 109.07.

The Japanese yen is trading close to a three-week high as China announced more lockdown measures in a bid to contain the spread of the virus amid the ongoing Lunar New Year holidays. So far, over 2,000 cases have been confirmed in China while the virus has caused around 80 deaths.

Investors have been turning towards the yen amid rising concerns that the spread of the coronavirus could have a severe impact on tourism, consumer confidence and economic growth across China. Meanwhile, expect low trading volumes during the Asian session in the coming days as some markets remain closed due to the Chinese New Year festive season.