USD/JPY falls below the 108.00 level for the first time since 1 November
Notably, price is trading under the 100-day MA (red line) for the first time since October and is looking to challenge the 1 November low @ 107.89. Markets are continuing to stick with the risk-off mood as we're seeing safety flows intensify in European trading.
A drop below the 1 November low will offer little support towards the 107.00 handle as sellers start to exert their control in the pair. As mentioned earlier, the event from today may not necessarily be one that markets may move on too quickly from.
I doubt we'll see a major direct military response by Iran in the aftermath - that may lead to an all out war - but if anything, this hints at a long struggle of geopolitical tensions between the two countries that could keep risk assets on their toes this year.
