USD/JPY gains spurred by CPI report fading on risk aversion.
USD/JPY shot to 119.25 from 118.75 on slightly higher US inflation data but as the mood sours in the equity market, the gains have been nearly erased. The S&P 500 is down 31 points to 2074 in the largest decline since March 25.
The fall in stocks was triggered by worries about the economies, poor earnings from AmEx and China moving to curb margin trading.
The FX market has been largely indifferent to the moves but is beginning to take notice, and it's put a slight bid into the yen.
