06.05.2020 Usd/Jpy Daily Analysis

06.05.2020 Usd/Jpy Daily Analysis

Usd/Jpy is trading at 106.26, it fell down with 0.33 mainly because the yen edged up due to the economic indicators and concerns about US-China tensions. According to Kit Juckes head of FX strategy at Societe Generale, 'the yen has been the pick of the major currencies since the crisis started, and that should continue, he went on to say the level of yields is the biggest driver of yen strength and they'd have to go up a fair bit globally to make the yen weaken. Meanwhile, the data overnight in the US shows an economy in decline. "US non-manufacturing ISM fell to 41.8 from 52.5, which was slightly higher than expected, and the business activity index fell to a record low of 26.0, from 48.0, and there were also sharp declines in the new orders to 32.9 from 52.9 and employment from 47.0 to 30.0. This, therefore, made Usd/Jpy pair to trade low today.