USD/JPY being dragged lower as Japanese stocks struggle on the day
It's getting a bit ugly now for Japanese stocks. The Nikkei is down by 3.3% on the day trading at the lows as we approach the close and that is putting further pressure on yen pairs at the moment. USD/JPY is trading to a low of 112.13 currently as the Nikkei looks set to post its lowest daily close in fifteen months.
But the worst part in all of this is that a close around current levels would also see it fall below the March low which is a key support level. A break below will pave the way for further downside pressure to intensify moving forward. That is where things can get even uglier for the Nikkei and Japanese stocks in general.
On the year, the Nikkei is down by more than 10% now. Ouch.
