Japan’s currency receives much attention from traders as the possibility of a global recession looms. The Japanese yen gained strength as traders focus on safe haven assets.
The recent news about the United States Treasury yields bolstered the yen in past trading sessions. Analysts are blaming the prolonged trade war between US and China for the movement.
Safe haven assets such as the precious metal gold, Japanese yen, and the Swiss Franc were considered by traders. The USD to JPY rose 0.07% or 0.08 in yesterday’s trading. The USDJPY extended its ranges from ¥105.73 to ¥106.78.
The AUD to JPY pair also gained in Thursday’s trading sessions. The AUDJPY pair climbed up 0.40% or 0.28 points, hitting levels between ¥71.33 to ¥71.50.
The yen also took advantage of the weakening British pound. The GBP to JPY exchange pair gained 0.37% or 0.47 points in sessions. The pair traded at ¥128.16 and has reached levels of ¥127.46 to ¥128.88.
Just last week, the China allowed the yuan to deplete as a countermeasure against the tariffs of the United States. And this week, the data US Treasury data released on Wednesday caused the Japanese yen to rally.
The dispute between the two biggest economies in the world continues to take its toll on the global economy. And with the recent movements of Beijing, the export war became a trade war.
Analysts have forecasted the yen and yuan’s movement; however, it was not enough to ease tensions.
Other Forex Pairs
Other safe haven assets aside from the Japanese yen are the Swiss Franc. Despite the concerns, the Swiss Franc only recorded little movements yesterday.
The USD to CHF pair did not move at all, the pair continued to trade at Fr0.9732. The EUR to CHF exchange pair inched up 0.09% or 0.0010 points and has traded for Fr1.0850 in yesterday’s sessions.
However, the CNY to CHF ran on the opposite direction. The CNYCHF lost 0.41% or 0.0006 points, trading at Fr0.1383 in sessions.
Meanwhile, the forex market receives mixed forecasts for the Japanese yen. Some are saying that the possibility of the Bank of Japan to ease further has increased.
Just last month, the bank committed to expand its stimulus if the global economy continues to slack.
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