22.05.2020 Usd/Jpy Daily Analysis

22.05.2020 Usd/Jpy Daily Analysis

Usd/Jpy is trading at 107.36 it is trading lower with 0.23 mainly because Japanese Finance Minister Taro Aso and Bank of Japan (BOJ) Governor H. Kuroda came out a joint statement, following the conclusion of the meeting to discuss the economy and monetary policy, in the wake of the economy and monetary policy, in the wake of the coronavirus pandemic “Govt, BOJ have closely coordinated to support economic activity, acted aggressively to ensure market stability.” Govt, BOJ committed to making every effort to facilitate corporate financing, maintain market stability and  it pointed out that they will work together to bring Japan’s economy back on a solid growth track   and this made the yen to gain strength against the dollar hence the reason why Usd/Jpy is trading lower today. On the other hand, Diplomatic tensions between the world's two largest economies US and China escalated further after Zhang Yesui, speaker for the National People’s Congress (NPC), said on Thursday that China will firmly defend its interests if the US does things that undermine China's core interests.  Adding to this, China's decision to impose a new Hong Kong security law further fueled concerns about a major US-China tussle and this in turn benefitted the Japanese yen's (JPY) safe-haven status and exerted some pressure on the USD/JPY pair.