USD/JPY holding in the mid 107 handle as COVID-19/trade wars dominate

• USD/JPY holding in positive territory on strong USD.
• Tradewars and COVID-19 seeing to mixed sentiment in markets. 

USD/JPY is currently trading at 107.48 having been slightly offered in Asia, -0.14% to 107.45 from 107.69 the high. It was a mixed session overnight, with the mood turning risk-off in Europe but a little more upbeat on Wall Street. USD/JPY consequently rise with there being a stronger

US dollar outperforming all the majors. USD/JPY maintained the 107 handle although the concerns over a second COVID-19 wave took USD/JPY up over a yen to 107.65.  The 10-year yields also rose from 0.70% to 0.72% via 0.67% heling to support the pair higher. 

Trade wars in focus

Meanwhile, Bank of Japan's governor Kuroda has noted that the downside risks for the economic outlook are large with Japan's economy likely to remain in a severe state, inflation to weaken adding that the global economy is rapidly worsening due to COVID-19.

Also, China has implemented a ban on importing Australian abattoirs in an apparent escalation of Beijing's trade war tactics. ABC reported that the "blacklisting of the red meat abattoirs - three in Queensland and one in NSW - comes just days after China flagged plans to introduce an 80 per cent tariff on Australian barley, bringing the trade to its knees." 

USD/JPY levels