Slippery slope for USD/JPY keeps the dollar offered on the day
USD/JPY continues to tumble on the day, now down to lows of 107.54
The dollar is not getting any reprieve in trading today, as EUR/USD and GBP/USD both hit session highs of 1.2337 and 1.3873 respectively as well.
But the prime mover has been USD/JPY as the pair is now down by more than 1% on the day already, with the break of the 108.00 level being the significant point in trading today.
That's putting additional pressure on the dollar as it is the weakest major currency on the day and the dollar index is near the lows at 89.83 currently.
As mentioned earlier, when the Nikkei started to turn around this was going to be the pair to watch out for, and it has already delivered much action on the day so far. European equities are also lower compared to the opening, and that's going to fuel this downside move even further on the back of risk-off sentiment.
US 10-year yields are also at lows for the day at 2.82%, a signal that investors are indeed moving towards safe haven assets.
For USD/JPY, the September low of 107.32 will be the focal point as it is the last line of support at this stage before a move towards 105.00. Will the BOJ come to its rescue? I doubt it, but it's certainly not good news for them.