USD / JPY continues to fall below 110.00

The Japanese yen, which is considered as a safe-haven, continued to rise on Thursday, dragging the USD/JPY pair below the key psychological level of 110.00 to a new six-week low.

Renewed concerns about the escalating trade conflict between the US and China continued to affect investors' moods, as demonstrated by the sharp losses on Asian stock markets on Thursday, which in turn led the yen to appreciate.

This comes on the back of the US President Donald Trump's recent announcement that he will hike tariffs on $200 billion worth of Chinese goods to 25% from the current 10% if an agreement was not met before Friday, reviving fears of a full-blown US-China trade war.

The risky mood was further reinforced by the continued decline in US government bond yields that held the US dollar bulls in defense, and did nothing to either support or delay the continued decline of the pair, leading to the lowest level since March 25 .

Still on the horizon there is some hope for the pair. If we look at today's economic calendar at 15:30 (GMT +3), the following data will be posted:

PPI (Producer Price Index) for April, trade balance data in March, the usual weekly unemployment claims, and Fed chairman Jerome Powell's speech. These data as well as Jerome's speech will be closely monitored, and they may indicate short-term support to the pair.

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