USD/JPY bounces to a session high of 107.40
Amid the heavy wave of risk aversion in the market right now, the dollar is outperforming the yen as we start to see economic worries intensify and that is being reflected across risk assets in European trading so far.
Oil is down by 2% in search for a firm break under $20 as equities are falling sharply across the board. US futures are down by 1.4% while European equities are also posting over 1% losses across the board after the opening hour of trade.
For USD/JPY, the pair looks to fall short in another attempt to break below 107.00 as it did at the start of the month. Price action lingered around the level since overnight trading but amid the risk aversion today, the dollar is trying to re-brand its authority.
The greenback is leading gains in the currencies space, trading at session highs across the board with the aussie and kiwi the main laggards so far today.
Back to USD/JPY, the mild bounce is encouraging but buyers have more work to do with the 107.50 level presenting the first near-term challenge next.
If the risk aversion continues down this road, trading in the pair will revert back towards the debate of orderly and disorderly declines in risk assets as we saw a few weeks back.
