Early on Friday, the safe haven currency Japanese yen is regaining strength after the initial optimism surrounding Pfizer’s vaccine eases and traders fear the economic impact of the second wave of the pandemic on the US and Europe. At the time of writing, USD/JPY is trading at around 105.03.

USD/JPY fell to the lowest level so far this week after having strengthened on the back of the news about Pfizer’s vaccine that offers more than 90% efficiency against COVID-19. So far this week, the JPY has lost around 1.5% of its value against the US dollar, making it the steepest weekly decline seen in five months.

While markets initially cheered news about the vaccine in the hopes that it could stop the pandemic and help turn the global economy around, the risk sentiment soured as cases continue to rise, especially across the US and Europe. With the onset of winter, the rise in cases has prompted several regions to reimpose lockdowns and restrictions, which are likely to hamper economic recovery all over again.

Despite the possible success of the vaccine, there is still considerable uncertainty on how long it will take to distribute the vaccine around the world, which is supporting the safe haven appeal of the Japanese yen. With more time to go, the global economy is expected to remain under pressure for longer while recovery could also take more time even after the rollout of the vaccine.