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The Japanese government took measures to reduce the spread of the illness and as cases grew outside Asia the JPY’s safe-haven appeal subsequently reasserted itself, economists at Rabobank brief.

Key quotes

“The downtrend in EUR/JPY that has been in place since the start of the year is consistent with the build-up of risk aversion in the market in response to the coronavirus.”

“We continue to favor the JPY vs. the EUR in the current climate and look for further downside in EUR/JPY in the coming months towards 113.4 on a 3-month view.”