As the Dow Jones falls 1.47 percent, the Japanese yen climbs across the board.
On the worst day in weeks, USD/JPY drops almost a hundred pips.
The USD/JPY pair fell even more, hitting a new weekly low of 109.52. It is still under pressure, trading near lows due to risk aversion.
Following the events in Europe, stock prices on Wall Street have plummeted. The Dow Jones is down 1.43 percent, while the Nasdaq is down 1.65 percent. The main European indices are down by more than 2%.
The negative sentiment among investors is encouraging demand for the Japanese yen, which is the best performer among the G10 currencies. In addition, the yen is being supported by a drop in government bond yields.
On the worst day in weeks, the USD/JPY is down more than a hundred pips. The decline is now attempting to break through the 109.50/55 region, which is just below the 55-day simple moving average. After breaking a short-term uptrend line, the bearish impulse gathered traction. The pair is about to close at its lowest level in more than a month. Around 109.15, the next significant support can be found (June low). At 109.95, and subsequently at 110.40, a recovery will find opposition./n
