On Thursday, the Japanese yen is making gains against the US dollar, which has dipped over worries that unemployment could be on the rise in the US because of the ensuing coronavirus pandemic. At the time of writing, USD/JPY is trading around 110.61.

The safe haven appeal of the Japanese yen is expected to remain in focus at least until the US government officially announces its massive fiscal stimulus plan, which has cleared the vote in the Senate and is due to be discussed by the House of Representatives. The US dollar’s safe haven sheen has waned a little after the Fed’s latest liquidity boosting measures, which have driven investors to look for other instruments to trade.

The market sentiment continues to be dominated by headlines about coronavirus, with cases continuing to climb higher across the world. Several countries have enforced lockdown measures and strict travel restrictions to prevent the spread of infections, but the uptick in cases has markets increasingly worried about a global economic recession.

The situations remains just as tense in Japan with Tokyo reporting a sudden spike in the number of cases on Wednesday. The government is considering declaring a state of emergency to prevent infections from spreading further and could take a call on this soon.