USD/JPY in focus again if risk aversion resurfaces

As noted here earlier this morning, for most of the Asian session the USD/JPY seemed to ignore the slide in the Nikkei 225 today. The USD/JPY remained steady close to the 157.50 level and not far removed from where it had closed on Friday, at 157.40. It is probably safe to say; that the rebound in US yields today seemed to eclipse the slide in the Nikkei, because were it not for that, then surely the dollar would have tracked stocks lower? Well, as the wider European markets reopened this morning, the USD/JPY did take a hit and dropped to a session low underneath 157.20. The low seen was set at 157.16. Now much could depend on how the European stock market fare after the opening this morning and what impact that has on risk aversion and a potential flight to the Yen. This is what we saw unfolding at times on Friday and that presented a move higher in the Yen versus the likes of the Pound and the Euro. Perhaps we shall see if there is more ofd the same this week? The USD/JPY is currently trading at 157.28