USD / JPY Is Above at 107.00

USD / JPY Is Above at 107.00

• USD / JPY struggled on the positive move of the previous day in the face of deteriorating US-China relations. • After the increase of coronavirus cases and increasing concerns in the USA, USD declined. • Optimism about the COVID-19 vaccine supported risk sensitivity. The USD / JPY pair remained above the 107.00 level, falling to lower levels. The pair was not able to take advantage of the intraday positive movement of around 60 pips from the previous day, and Thursday was able to sell in the first half of the day. Concerns about the deterioration of US-China relations have been one of the key factors that put pressure on the USD / JPY pair, making the safe haven Japanese yen. Diplomatic tensions between the two largest economies in the world have increased further, on the instructions of the United States to close its consulate in Houston on Friday, with the sudden accusation of spying on China. Concerns have emerged that the US-China trade deal may end after China's response. This happened amid the widespread sales trend around the US dollar, which further cooperated with the softer shade of the USD / JPY parity. The US dollar came under pressure as the second wave of coronavirus in the U.S. raised all the worries apart from hopes of a rapid return for the domestic economy. However, optimism about a potential vaccine for COVID-19 continued to increase investors' confidence. This gave some support to the USD / JPY pair. The market is looking forward to the US Initial Unemployment Claims to be announced on Thursday. The data can affect the USD price dynamics. This, together with the wider sense of market risk, can contribute to the generation of trade opportunities before Friday's PMI reports from major economies.