USD/JPY trips over itself in Tokyo, en route 108.00 as the Nikkei recedes

  • USD/JPY going lower as equities cool off in afternoon Tokyo trading.
  • Continuing risk aversion underpinning the Yen.

USD/JPY is tumbling out of the Asia range, pushing into 108.35 as of writing.

The Yen is gaining once again, sending the US Dollar down the charts as the Nikkei continues to slide, giving up the day's gains and currently trading into the red as risk appetite in the market wanes once again. 

Risk aversion is still the flavour of the month in financial markets, as traders seem poised to look for excuses to pull their money out of risk assets and dump as much cash as possible into the Japanese Yen, the current safe haven of choice for market participants everywhere. Despite repeated attempts by key members of the Bank of Japan to talk down the Yen, USD/JPY continues to tumble as the Greenback is all too willing to concede ground, and the pair is now one good push away from trading at six-month lows.

USD/JPY Technicals

Intraday support is starting to weaken, with USD/JPY already breaking below key support; the next level to contend with will be 108.16; a final break into the 108.00 psychological handle will have the pair trading at its lowest price in over six months, while bulls will have to contend with resistance priced in at the upper bound of today's early consolidation  at 108.77, with swing resistance at the 109.00 handle just above.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.