On Wednesday morning, USDJPY is falling a little bit but it seems like the Yen hasn’t decided on the direction yet.
It looks like the Japanese Yen took a break against the USD. The current quote for the instrument is 104.50.
Lack of the demand for the Yen is quite clear: investors aren’t looking for a “safe haven” right now as they are expecting an effective and safe (and affordable, if possible) vaccine against the coronavirus, because it may be a game-changer in the fight with the global pandemic and help the world’s economies to start recovering. These expectations put the Yen on the back burner of investors’ attention.
Some particular improvement of the Yen is good for the Japanese exporters and the country’s overall financial system.
The Bank of Japan Governor Haruhiko Kuroda said yesterday that financial and monetary policies were coordinated much better during this crisis than the previous ones. According to his opinion, the regulator did a great job in providing major banks with liquidity, thus helping to prevent negative associations between financial performance and economic activity.
At the same time, the BoJ still believes that the global uncertainty remains pretty high and that’s a great risk.