The Japanese yen has been plummeting today.

Pressures on the economy continue to mount as the Prime Minister, Shinzo Abe, is expected to declare a state of emergency in response to the pandemic.

According to figures from Johns Hopkins University, the number of confirmed COVID-19 cases in Japan now sits at 3,600. Over a thousand people have died from the deadly virus, and the numbers continue to increase.

As at 3:05 AM ET on Monday, the USD/JPY had gained by 0.7% and has been consolidating in that range.

Japan so far has only sustained minor hits to their economy. The number of confirmed cases is not anything close to the infection rates seen in the United States and Europe.

For Japan however, pressures are now starting to build. The number of deaths in the capital, Tokyo, is now over 1000. Although still low, the numbers are a significant cause for concern.

The Prime Minister of Japan, Shinzo Abe, might be forced to declare a state of emergency this week.

Major economies around the world have already shut down in the time that the yen experienced a rapid rise. The pandemic has caused many to abandon their jobs and embrace social distancing. The number of jobless claims filed per week has been increasing at an exponential rate, and the question now is: is it Japan’s turn to be significantly affected?

In the United States, it is the 4th week since the lockdown was declared and there are no signs that the lockdown will be lifted anytime soon.

Europe too has been in plunged into major economic crisis. More than half of the COVID-19 deaths on the globe have now come from Europe. Europe has the highest mortality rates in the world.

The USD, on the other hand, has seen some positives amidst the growing COVID-19 pandemic. On Monday morning, the USD was riding high against a bulk of the six other major currencies. The USD dollar has also been rising against other minor and emerging currencies.

Japanese Prime Minister Shinzo Abe, determined to do all that he can to sustain the Japanese economy.

Prime Minister Shinzo Abe is determined to do all that he can to sustain the Japanese economy. But with the recent sudden rise of the COVID-19 cases seen in Japan, it is unsure whether the Prime Minister will be successful in his plight.

The effects of the COVID-19 virus might not peak in Japan for another month. However, Shinzo Abe believes that the country must be ready to brace for the impacts of the growing pandemic.

The declaration of the state of emergency will be “yen negative.” Masafumi Yamamoto, the Chief Currency Strategist, believes.

All sectors of the economy may be halted by the emergency and it seems that there is no other direction for the economy to head but down.

As of Monday morning, the dollar was rising against the Japanese yen. Should the national emergency be declared, this may signal the start of a rapid decline for the Japanese economy in the coming weeks.