USD/JPY hits another low

The pain continues in USD/JPY as it extends today's drop to 203 pips, hitting 111.09. That's the worst since the final day of July last year. That was the BOJ surprised investors by only doubling ETF purchases while leaving the monetary base unchanged. That day the pair fell 320 pips.

Today's move is all about political drama as the market flees to the safety of bonds, gold and the yen. The S&P 500 is down 31 points to 2369.