30.04.2020 Usd/Jpy Daily Analysis

30.04.2020 Usd/Jpy Daily Analysis

Usd/Jpy is trading at 106.64, the pair fell with 0.07 from 106.7. This is mainly because the effects of coronavirus continue to weigh on the global economy. The advance estimates showed that the US economy contracted by 4.8% in the three months to March and the Fed cautioned that the negative impact from the pandemic could prolong in the medium term. The US gross domestic product fell  4.8% in the first quarter and has been recorded as the worst economic decline since 2008, and it has exceeded economists forecast for a 4% decline in output and investors are afraid that it might be a worse situation in the second quarter hence why the USD/JPY pair is going down today. The Federal Reserve decided to keep rates unchanged on Wednesday but expressed to do more to support the economy if needed. Chairman Jerome Powell pointed out that they will continue to use tools to ensure that the recovery, when it comes, will be as robust as possible. He is of the view that the economy will need support from everyone and more judging from the latest economic growth figures for it to be a robust one.