USD/JPY: The yen is struck

The USD/JPY pair is at fresh yearly highs above 110.30, trading a few pips above the level. Better mood and Japanese data hit the yen, Valeria Bednarik from FXStreet reports.

Key quotes

“Market players are in a better mood this Wednesday, as China reported that the number of coronavirus contagion cases outside the Hubei province is slowing. That weighs the most on the Japanese yen due to its safe-haven condition and the batch of recessionary data released in the last couple of weeks.”

“Japan released overnight its January Merchandise Trade Balance, which resulted in ¥-1312.6B, better than the ¥-1694.9B expected although much worse than the previous ¥-154.6B.” 

“The US will release today MBA Mortgages Applications for the week ended February 14, and January Housing Starts and Building Permits. During the American afternoon, the FOMC will release the Minutes of its January meeting.”