13.05.2020 Usd/Jpy Daily Analysis

13.05.2020 Usd/Jpy Daily Analysis

Usd/Jpy today is trading at 107.07, it fell with 0.06 mainly because of the concerns about the second wave of virus infections which extended some support to the safe-haven JPY. Concerns about the second wave of coronavirus infections continued weighing on investors' sentiment as evident from the prevalent cautious mood, which extended some support to the Japanese yen's safe-haven status and seemed to exert some pressure on the major. More so the speculations on the negative Fed rate made the USD weaker against JPY. The USD struggled to gain any meaningful traction amid speculations that the Fed might be forced to push interest rates below zero. Bets for negative Fed rates increased further after the US President Donald Trump on Tuesday asked the US central bank to do more policy easing. However several FOMC members including St. Louis Fed President James Bullard and Chicago Fed President Charles Evans commented against the idea of negative interest rates, and due to this issue today  the FED Chair Jerome Powell scheduled a speech on the current economic issues and this will have an impact on the USD and the USD/JPY pair.