Home » Market News » Japanese Yen Trades Near a 7 Week High vs the Dollar

Japanese Yen Trades Near a 7 Week High vs the Dollar

japanese yen

The Japanese yen is trading near a seven year high against the U.S. dollar as traders flee into safe haven asset classes.

On Friday the USD/JPY Forex market saw its largest daily loss since 2017. Forex traders remain very nervous about the spread of the COVID-19, coronavirus, which is now spreading in the United States and European Union.

The U.S. dollar is trading steady against the Japanese on Monday during the Asian trade hours. The USD/JPY Forex market is trading at 108.24 yen. On Friday, the Japanese yen hit a seven week high at 107.77 yen.

Forex traders are not buying currencies associated with a possible recession and trade. The Australian dollar, which relies on trade with China shed over one percent on Friday and the AUD/USD currency exchange rate is currently trading at 0.6527. This market hit its lowest price point in 11 years at 0.6500 on Friday.

The U.S. dollar index, which measures the greenback against six other currencies, is down 0.09 percent to trade at 93.34 and the GBP/USD Forex market is down 0.79 percent to trade at 1.278.

Forex Traders Support Safe Haven Assets like the Japanese Yen

Traders were hopeful, at one point last week, that the COVID-19 virus could be contained. These hopes have been dashed as the infection continues to spread around the world.

This has wreaked havoc on the global financial markets which have seen equities and other risk assets sell off over the last week.

Traders are worried as supply chains are being disrupted and for the month of February, China’s factory activity slowed precipitously.

U.S. Health Officials Report More Cases

Health authorities in Washington DC have confirmed the second death from the contagion. The patient was a 70 year old man from Washington State.

The first case has also been reported in Manhattan. A woman who recently traveled to Iran is currently home quarantined. The Governor of New York, Andrew Cuomo has confirmed the first case in the state. He did not offer any further details.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

Check Also

euro

Euro Currency falls below 1.2080 to Challenge 1.2070

0.0 00 Looking at the benchmark EUR/USD currency exchange rate, the euro currency has fallen …