Forex Market Update: Japanese Yen Crosses Tumble Lower as Risk Appetite Falters

The dollar extended Monday’s gains into Asia Tuesday trading session, with heavy and aggressive JPY cross selling weighing on AUD/JPY, GBP/JPY, EUR/JPY and NZD/JPY and resulting in further losses for AUD/USD, GBP/USD, EUR/USD and NZD/USD in opening Asian trading. The cross sales also forced USD/JPY to break the base of the recent range around 97.20/30 and fall to lows of 96.53, weighed down as well by the slide of over 2% in the Nikkei. In fact, all Asian stocks markets (except Taiwan which fell 4% yesterday) were broadly lower after the DJIA losses on Monday. EUR/USD, which opened around 1.3800, dropped to lows of 1.3748 before bouncing as high as 1.3821 on short-covering. Oil remained heavy, losing further ground and edging toward $70, though gold managed to gain back some minor ground, rising $6.00. Treasury bonds gained ground on the back of Asian regional stock weakness, sending yields lower.