The safe haven appeal of the Japanese yen weakened slightly early on Wednesday over hopes of China taking additional measures to protect its economy from the impact of the coronavirus. At the time of writing, USD/JPY is trading at around 110.06.

USD/JPY turned bullish after China reported a slowdown in the number of infected cases in the Hubei province for the second consecutive day, with infections increasing at the slowest pace seen since January 29. The Japanese yen also declined as the risk appetite of the markets received a slight boost over reports that China will look at injecting more cash or consider mergers to bail out airlines that have suffered on account of the travel restrictions imposed by the coronavirus outbreak.

So far, the coronavirus has claimed over 2,000 lives while the number of infected cases has risen to above 74,000. The virus has brought China’s economy to a bit of a standstill as factories, workplaces and markets remain closed in a bid to contain the spread of the virus. The lockdown is expected to severely dent China’s manufacturing sector and have a fallout effect on global companies with supply chains in the country.