EUR/JPY is at the lowest since the January flash crash
Yen strength is the story at the moment. USD/JPY has given back the Fed gains while EUR/JPY broke last week’s low and 120.00.
This might be the start of some sleepless nights in Tokyo. Yen strength is a thorn in the side of the Japanese economy and a constant battle. The focus is usually on USD/JPY and they get restless there close to 100.00 but European-Japanese trade and even UK-Japanese trade are important and if some real risk aversion hits, they could be scrambling to fight it with little in terms of monetary policy ammunition.
I don’t think we’re there yet but the technicals are giving way and a further 10-figure drop would make for some drama.