Safe Haven Appeal of Japanese Yen Dips as China Reports Fewer Coronavirus Cases

The safe haven currency Japanese yen is trading bearish against the US dollar on Thursday after China confirmed a continued reduction in the

Safe Haven Appeal of Japanese Yen Dips as China Reports Fewer Coronavirus Cases

The safe haven currency Japanese yen is trading bearish against the US dollar on Thursday after China confirmed a continued reduction in the number of infected cases and the number of dead from the coronavirus outbreak. At the time of writing, USD/JPY is trading around 111.37.

China confirmed that only 349 cases of coronavirus were reported from Hubei while the death toll climbed lower to 108, giving rise to hopes that the outbreak may be on its way towards getting contained. The market sentiment received an additional boost earlier today after China’s central bank, PBOC, cut its benchmark lending rate by 0.10% to support businesses and offset economic damage from the coronavirus.

On Wednesday, the Japanese yen lost as much as 1.3% of its value, the steepest fall seen since August 2019. This was triggered more by stop loss orders getting triggered after traders’ options expired and had USD/JPY trading in a tight range in the previous session.

There is also a slight improvement in market sentiment after China restarted some of its manufacturing activity and attempts to return to normalcy after imposing lockdown measures for several weeks in a bid to contain the outbreak.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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