The Nikkei continues to fall on the day, down by more than 7%
The Nikkei 225 touches a low of 21,078.71 - a 7.01% drop on the day - which would make it the biggest drop in terms of index points since November 1990.
And that is not helping sentiment in USD/JPY as the pair falls to a low of 108.46. Equities are being hammered in Asia - the Nikkei in particular - and that's providing a double-whammy for USD/JPY to move to the downside.
The moves in the FX market has been relatively "mild" in comparison to the rout in equities, but the Japanese yen has been the biggest beneficiary of that.
The next level to the downside to look out for in USD/JPY is the recent support at 108.28.
On the daily chart, we're quite near the bottom of the range we've been stuck in since the start of 2017 - so that's certainly one thing to look out for if the rout in equities turns into something bigger. Once the range breaks, the downside move will be sharp and fast.
