USD/JPY drops towards 156 as US yields fall

The USD/JPY has fallen back further so far today. Yesterday afternoon, as reported on here at the time, the dollar had rebounded from a low at 156.67, to reach 157.35. Earlier in the day it has briefly topped the 158 handle again, but the rise to 158.07 was then met with risk aversion and Yen buying as US stocks crumbled. Hence, even as the US stock markets recovered their worst losses, the USD/JPY dropped back into the close, where it later ended the session at 156.84. Today it has fallen back from an earlier higher at 157.07. The low seen has been set at 156.14. Beyond risk aversion, the other driver for the fall back in the dollar yesterday and today has been the demand for US treasuries, which has seen the 10 year note fall by around 0.10% since this time yesterday morning. The USD/JPY is currently trading at 156.29