18.05.2020 Usd/Jpy Daily Analysis

18.05.2020 Usd/Jpy Daily Analysis

Usd/Jpy today is trading at 107.25, it’s trading higher with 0.23 mainly because Japan has fallen into recession for the first time in four years. The world's third-largest economy shrank 3.4% from January to March, the second straight quarter of decline. And the second quarter is expected to look far worse, with economists looking for the fall in the gross domestic product of 22% -- the biggest decline on record. This, however, weakened the yen against the dollar hence the reason why the Usd/Jpy pair is trading higher today. However the tension between China and US continue to simmer as the White House trade advisor Peter Navarro added to the bad blood between the U.S. and China over the weekend when he suggested in an interview with ABC's “This Week” that Beijing sent "hundreds of thousands of Chinese on aircraft to Milan, New York and around the world” to spread the virus after hiding it from the world for two months.  The Trump administration has been keen to paint China as the bad guys regarding the outbreak and spread of the coronavirus, not least against the backdrop of the November Presidential election, which is now less than six months away. The U.S. moved to block chip supplies to Huawei Technologies, part of its plan to stop the Chinese telecom giant's rollout of 5G mobile broadband and this is affecting the US dollar.