Hints of a risk off move is helping the yen push ahead

And that is dragging all yen pairs lower as well. The dollar stays bid across the board as a result too with the euro, pound and loonie leading losses among the major currencies. The loonie is also weighed down by falling oil prices as risk assets are starting to slip.

European equities have been weighed lower thanks to the rising yields in Italy while the declines in oil continues to extend further as well. The FTSE MIB is now down 1.9% and is dragging other regional bourses lower too and oil prices are now down by more than 1% on the day.

At the same time, E-minis are on the decline too falling to session lows currently and that is what is also weighing on market risk sentiment right now. Although US banks (and bond market) are off today, the stock exchange is still open for business albeit with thinner liquidity.

But the early signs are telling, and they're not looking good despite it being a US holiday.

As for USD/JPY, the pair now falls to its lowest level this month and looks to be breaking below the 200-hour MA (blue line) @ 113.67 now. Hold below that and price bias turns more bearish.

In the context of the bigger picture, it appears that the resistance region around 114.50 continues to be a tough cookie to crack for buyers:

With Treasuries not traded today, yields aren't going to offer support for the pair in trading later. It's all about equities/risk sentiment right now.