USD/JPY erases earlier gains, falls to 110.20
It isn't a big move in the pair as it falls from 110.40 levels to 110.20 but we are seeing a bit of a reaction as the risk mood turns more sour on the session.
Bonds are bid with 10-year Treasury yields easing to 1.319%, just a minor hiccup away from breaching the 1.30% level. Meanwhile, US futures have also turned negative and all of this is weighing on the market to start European trading.
Watch out for the 1.30% level in Treasuries for both gold and the yen, that could be another trigger for stronger moves later in the day.
