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    USD/JPY drops toward daily lows amid risk aversion Matías Salord

    USD/JPY  failed to hold above 104.00 and is approaching daily lows as stocks in Wall Street extend losses. The Japanese currency is the best performer across the board, and resumed the upside after making a pause before the US session. The Dow Jones is falling for the sixth day in a row and drops 0.75% while the Nasdaq declines 1.15%. The US 10-year bond yield fell to 1.530%, the lowest level since 2012.Intervention coming?The pair is back below the 104.00 level. Recently it dropped to 103.74, level still above European session lows that lie at 103.53. According to many analysts current prices are “intervention levels” signaling the Japanese official could at any moment, particularly if USD/JPY drops further, intervene in the market to curb yen’s strength. Earlier today, the yen rallies after the Bank of Japan kept its monetarily policy targets unchanged.The recent recovery of USD/JPY was capped below 104.50 and it turned again to the downsides. Against other currencies, the yen is trading at fresh multi-year highs. 


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