The US dollar is trading near a seven-week high against the Japanese yen, amid a slow recovery in the oil market after attacks on Saudi Arabia. Nevertheless, traders prefer caution in anticipation of the US Federal Reserve meeting, which is expected to lead to another interest rate cut.  

The Japanese yen fell on Wednesday as the surge in the number of investors in safe assets continued to weaken amid rising risk appetite, while the euro is trading in flat before tomorrow's meeting of the European Central Bank.  

On Monday, the Japanese yen strengthened due to increased investor appetite for safe-haven assets, as Washington and Beijing introduced additional export tariffs for each other, reinforcing the gloomy tones hanging over global economic prospects.  

The yen rose on Tuesday as some investors tempered optimism about the prospect of an early end to the US-China trade war, and traders continued to avoid risky assets.  

The Chinese yuan reached an 11-year low in continental trade and fell to a record low in offshore after a sharp escalation of the US-China trade war, which undermined investor confidence and overshadowed global economic prospects.  

Safe-haven currencies such as the yen and the Swiss franc are under pressure on Monday morning amid expectations from politicians of new incentives that could reduce investors concerns about a slowdown in the global economy.  

On Wednesday, the Japanese yen continued to grow, as China's weaker than expected economic data reinforced the view that the end of the trade war was still a long way off, even if US President Donald Trump postpones the imposition of some additional duties.  

The dollar continues to defend itself against the safe-haven yen in Monday's foreign exchange trading, as the trade dispute between China and the United States seems to have dragged on. Since no settlement is yet to be expected, the Japanese currency is confidently taking advantage, even though the holidays in Japan and Singapore have led to not very active trading.  

The Japanese yen is trading near an eight-month high versus the dollar on Friday as renewed concerns about the U.S.-China trade dispute and signs that central banks are more worried about the global economy boosted safe-haven assets.  

Memories of the January 3rd 2019 Japanese Yen mini crash, which impacted the Australian Dollar as well, barely faded when forex traders are reminded that fluctuations in the world’s most liquid market can be drastic. The January 3rd mini crash and recovery didn’t leave any permanent damage and neither did yesterday’s mini crash in the Swiss Franc. The USDCHF initially spiked from 1.0004 to 1.0096, then reversed direction to dip below parity and eventually resumed its path to the upside.

On February 3rd, financial markets saw their first spike in volatility in over seven years which rattled the cage of traders and investors across asset classes. Well over $2 trillion were wiped off portfolios in a very short period and while assets have rebounded since then and recovered losses, it opened up discussions about what will be next for financial markets. The preceding period of low volatility was unprecedented and while the majority may have felt comfortable, professionals have warned about the dangers.

Merry Christmas to everyone who observes and celebrates it! This period is a great time to reflect on a great year which is coming to an end, and smart forex traders are taking a closer look at their forex portfolios in order to conduct an annual overview of their performance, crunch numbers and determine where they need to improve to make the next year an even better one. Many global markets are closed for Christmas today which means very thin volumes will be encountered.

Maybe you have come across the term ‘Tankan Survey’? Those who have not should look it up as it is a very important economic report released by Japan. The Tankan Survey is released by the Bank of Japan four times per year; in April, in June, in September and in December.