USD / JPY looks to challenge a break below July 31 low @ 104.19
The yen is the currency to watch as we move things forward in the session, with the USD / JPY now falling to a low of 104.15 – its lowest level since March 12.
The pair is now testing the July 31 low at 104.19 and a firm break below here could cause more problems for the yen pairs in general (more yen bids).
The dollar was already looser to start the day, but risk aversion in the market isn’t quite helping the USD / JPY’s mood as sellers keep up the momentum.
European indices are stretching losses to over 1% now, keeping the pressure on the risk mood as we start things off in the session.
Returning to USD / JPY, a daily close below the July 31 low @ 104.19 will give sellers more conviction to pursue another bearish move with little push to 102.00 and potentially target the lows of March also.
You can bet Japanese officials will be watching this closely, but at this point it might be a bit of a slippery slope in the next few sessions with Japan on vacation tomorrow; this may not stop the BOJ from chewing.