Risk-off lifts Yen, pushes USD/JPY lower to 108.20
- USD/JPY is trading at session lows near 108.20.
- Risk aversion in equities has likely put a bid under the JPY.
- Treasury yields are also losing altitude.
With equities flashing red this Thursday morning in Asia, the anti-risk Japanese Yen is better bid and the USD/JPY is reporting a 0.26% drop.
The pair has shed 30 pips in the last hour or so to hit a session low of 108.16.
The futures on the S&P 500 are currently reporting a 0.27% drop. Meanwhile, major Asian equity indices like Hang Seng, Nikkei, and the Shanghai Composite are down at least 0.7% each.
The equities are reporting losses likely due to lingering trade tensions. U.S. President Donald Trump said on Wednesday he had no specific deadline for a trade deal with China that would allow the world's second-largest economy to escape 25% tariff on its $300 billion worth of exports to the US, according to Reuters.
If the risk aversion worsens in Europe, then USD/JPY will likely drop below the psychological support of 108.00.
It is worth noting that the 10-year treasury yield is already feeling the pull of gravity and will likely add to the bearish tone around the USD/JPY pair. At press time, the yield is trading at 2.10%, having hit a high of 2.18% on Tuesday.
Technical Levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
