The yen is the currency to watch as we get things going on the session, with USD/JPY now falling to a low of 104.15 - its lowest level since 12 March.
The pair is now testing the 31 July low @ 104.19 and a firm break under here could spell more trouble for yen pairs in general (more bids in the yen).
The dollar was already softer to start the day but the risk aversion in the market isn't quite helping with the mood in USD/JPY as sellers keep up the momentum.
European indices are extending losses to over 1% now and that is keeping pressure on the risk mood as we get things underway on the session.
Back to USD/JPY, a daily close below the 31 July low @ 104.19 will give sellers more conviction to chase a further downside move with little in the way of a push towards 102.00 and potentially targeting the March lows as well.
You can bet that Japanese officials will be watching this development closely but at this point, it might just be a bit of a slippery slope over the next few sessions with Japan out on holiday tomorrow; that might not stop the BOJ from jawboning though.