The mood is darkening in risk assets today with the S&P 500 now down 1.6% and Nasdaq lower by 1.7%. A few hours ago, futures were close to unchanged so it's been a swift decline that's accelerated since the US equity open.
As you would expect, the yen is the main beneficiary in the FX market. It's the top performing G10 currency today.
GBP/JPY is an interesting look at the yen. The pound has been a star performer in the past three weeks but might have gotten ahead of itself. GBP/JPY has now stalled ahead of the October highs and just ticked below the low so far in 2022.
Given the resistance above and the overbought conditions, along with my belief that omicron in China will be a problem for global growth, and there's a potential trade there.
