Risk gets the better of USD/JPY as it falls below 149 this morning

Following on from the previous update, noting the near 4% slide in the Nikkei 225, the USD/JPY has taken another hit. On Friday the push below 150 on the USD/JPY eventually saw the dollar fall to 149.69. Naturally, that was all about risk aversion, as the US equity markets tanked into the weekly close. The USD/JPY later closed out the week in the US at 149.84. The price action so far today has seen the dollar fall below 149 earlier. The low seen so far has been set at 148.73 and given the extent of the slide in the Nikkei, it is a little surprising it did not fall further. However, the USD/JPY has rebounded off that earlier low just now, but the outlook from here on is very uncertain, given that risk-off slide in stocks and US index futures this morning. In fact, the dollar is falling back below that 149 handle again just now and also below its 21 day moving average (now at 149.06). It is currently trading at 148.99