USD/JPY testing the key level that has been limiting the downside so far
Risk is turning a bit sour on the day with Treasury yields easing back below 1% and we're seeing European stocks fall further alongside US futures, which are down by 1.5%.
That is seeing the yen and franc gain ground on the day, with the former leading the charge in the major currencies space. USD/JPY is now back down to 107.00, which has been a key daily support level for the pair this week.
A firm break below that may set off more alarm bells at the BOJ as there might be little to stop a further fall towards 105.00 amid the ongoing virus outbreak across the world and the fact the Fed will cut rates even more down the road.
Maybe if I close my eyes, this will all go away.
