Early on Tuesday, the Japanese yen has weakened against the US dollar as risk currencies gained some bids amid choppy trading and high volatility in global financial markets over hopes of further stimulus measures to protect against economic recession. At the time of writing, USD/JPY is trading at around 106.38.

However, the mood in the markets continues to remain nervous as worries mount that the rapidly spreading coronavirus pandemic could drive the global economy towards a recession. This sentiment has caused markets to experience sell-off as investors rush out of instruments towards cash as a result of the high uncertainty.

The safe haven currency Japanese yen eased after the New Zealand government unveiled a large stimulus package to protect its economy, and raised expectations of other leading economies also rolling out more such protective measures. Most of the forex markets are presently experiencing movements as traders rush to cut their losses and unwind their positions to trim risks.

Amid the heightened risk-off sentiment, thin liquidity is also contributing to the choppy trading being experienced lately. USD/JPY, meanwhile, has also turned bullish over the increased preference for the US dollar among traders as a result of the deteriorating market sentiment.