Flash: Yen supported by more risk-averse trading conditions - BTMU

FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Misubishi UFJ notes that the yen has continued to firm modestly in the Asian trading session with USD/JPY moving closer to support at the 100.00-level.

He sees that the yen is deriving support from more risk-averse trading conditions with global equity markets weakening further overnight with the Nikkei 225 index declining by just over 3.7%. JGB yields have declined alongside the sell off in Japanese equities perhaps indicating that conditions are beginning to normalise in the JGB market after the recent sharp sell off.