The Japanese yen is the leading major currency in trading today
Major currency bloc performance versus the Japanese yen currently
The yen was already ahead after Q2 GDP results surprised on the upside but further declines in the lira - there were talks about TRY/JPY hitting stop-losses - saw the yen gain further early on in the session.
And as the lira continued to receive a pounding, fears of contagion resulted in flows away from equities into bonds. But also the fact that banking stocks were badly hit after the ECB reportedly expressed concerns surrounding the Turkey situation made matters worse.
And all of this is helping to feed into the yen's gains so far today. Right now, USD/JPY is at session lows of 110.62 and EUR/JPY also tests lows of 126.80 at the moment.
Price looks to be breaking further below support at 127.00 for EUR/JPY and the next level that sellers will be eyeing for is the June low @ 126.65. Following which, support is then seen at the 50.0 retracement level @ 126.18.
