The dollar was flat against the Yen after a decline on Wednesday (04 / Apr). The trade war between the US and China is still the background that drives these currency pairs. The US dollar dropped 0.1 percent to 106.50 yen, returning some of the 0.6 percent gain gained yesterday. At the time of writing, USD / JPY is trading at 106.52.
The dollar strengthened against the yen a day before risk appetite increased and major Wall Street indices advanced. The US currency is helped to stabilize after being hit by a number of declines. The yen that serves as a safe-haven currency was abandoned by investors.
Amazon, who has been criticized by President Donald Trump, has instead gained stocks from market turmoil that the criticism will not be manifested in a policy change.
Nevertheless, the outlook for the US Dollar remains bleak due to global trade wars. During the year 2018 this took place, the US Dollar has declined by 2.2 percent against the six major currencies.
China Condemns US Trade Policy
On Tuesday, the Trump government announced it would apply a 25 percent import duty on 1,300 industrial, transport and medical products from China. This move was taken on the grounds to force Beijing to change its intellectual property practices that are considered violated by the US.
In response, the Ministry of Commerce of China said it "condemns and strongly opposes" the US action following the Section 301 investigation and will take a step back.
As a result, the turbulence of trade war was increasingly heated and affect the volatility of US Dollar-Yen. Satoshi Okagawa analyst from Sumitomo Mitsui Banking Corporation said the US dollar is likely to decline, but the Yen's rise to 108th position is not expected to happen.
At the same time, the need for US Dollar sales among Japanese traders has now subsided over the end of the financial year-end in the country. That means, Okagawa continued, the risk of a decline in the US Dollar could be limited.
