USD/JPY rebounds from earlier session lows

Earlier this morning the jump in risk aversion following the news breaking from the Middle East delivered a sharp move to risk havens. That saw the Yen attract immediate inflows. Prior to that move, the USD/JPY had been pretty unmoved by the latest Japanese inflation report, which did not show any increase in nationwide annualised consumer prices. However, the rush to the Yen that followed saw the USD/JPY fall rapidly, from just above 154.60, to just below 153.60. That came as the US dollar attracted inflow elsewhere, so the major Yen crosses got hammered at the same time. The range in the USD/JPY since the US close last night (154.64) has been covered by 153.59 to 154.67. The dollar has now lifted off that earlier low though. That said, it is likely to a nervous and potentially volatile session heading into the weekend and one where further headlines from the Middle East are sure to dictate the price action. The USD/JPY is currently trading at 154.40