The yen is bid as equities face some pressure on the day
It's not exactly a full-fledged risk-off move just yet but the fact that there are multiple factors weighing on equities is starting to give rise to the thought of a potential safe haven play in markets ahead of US trading.
Turkish lira worries still linger and that is weighing on broader asset classes, then we had poor Tencent Q2 earnings and that is weighing on tech stocks, and we also have falling commodities (metals especially) and that is weighing on resource/mining stocks.
And as I type this, EUR/JPY has just moved to fresh session lows of 125.62 currently.
As equities continue to face a beating, bond yields are also falling with US 10-year yields down to session lows of 2.866% - lower by 3.3 bps.
As for EUR/JPY, it's looks like we'll be heading for a retest of the 125.31 support level which has held off declines on previous occasions. Break below that and it opens up the way to test the year's low @ 124.62 followed by the 61.8 retracement level @ 123.50.
