USD/JPY hits a session low of 109.00 now
It's a slippery slope for USD/JPY if we see the 109.00 handle give way. Right now, the pair has already hit lows not seen since February as the lows today fall below the earlier May low @ 109.02. Currently, bids around 108.90-00 are helping to cushion the fall but as global trade tensions continue to rise, a break to the downside may be inevitable.
The yen is gathering strength as Treasuries are staying well-bid amid the risk-off mood in markets today - after Trump slapped fresh tariffs on Mexico. 10-year yields are down by 3.7 bps to 2.177% currently while US equity futures are down by 0.7% as we look to begin the European morning session.
If sellers chew through bids around 108.90-00, the next key support will come from the February low @ 108.50 before price chases a move towards the 108.00 handle.
