USD/JPY continues to back off eight-month high

USD/JPY backed off May 23 highs for another session following earlier trade data from Japan and ahead of US labor data, and amid concerns over the Coronavirus and the risks of becoming a global epidemic. 

As of 06:11 GMT, USD/JPY fell 0.25% to 109.56, marking the lowest since January 13 at 109.55. 

Earlier Japanese data showed the trade deficit widened to 152.5 billion yen from 85.2 billion in November, while analysts expected a 152.6 billion deficit. 

Japanese industrial activity rose 0.9% in November, compared to a 4.8% tumble in October. 

From the US, unemployment claims for the week ending January 18 is expected up 10 thousand to 214 thousand, while continuing claims are estimated down 17 thousand to 1.750 million. 

At the Davos Economic Forum in Switzerland, President Donald Trump criticized the Federal Reserve for hurting growth and stock gains, saying that rate hikes prevented Dow Jones from adding another 10 thousand points. 

Otherwise, Chinese authorities suspended air and rail travels from Wuhan, the place where the virus originated, with 17 people dying so far and over 540 infected.