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  • Anti-risk yen (JPY) is drawing haven bids on US-Iran tensions. 
  • USD/JPY is trading at levels last seen on Nov.1.
  • US airstrike is a major escalation, experts say. 

USD/JPY is flashing red for the fifth straight day and is currently trading at 108.20, the lowest level since Nov. 1.

The pair is fast closing on the 100-day moving average, currently located at 108.14. The anti-risk Yen is drawing haven bids, courtesy of heightened US-Iran tensions. 

A US missile strike on Baghdad airport killed Iranian Gen. Qassim Soleimani, the head of Iran’s elite Quds Force and Abu Mahdi al-Muhandis, the deputy commander of Iran-backed militias, Iraqi TV and three Iraqi officials said Friday.

The news has been confirmed by the US officials and experts are calling it a major escalation. “There’s no turning – the US is committing itself to a full-fledged conflict with Iran, one that won’t be confined to Iraq,” Ranj Alalddin, Fellow, Brookings Institution Doha, and Director, Carnegie Corporation tweeted a few minutes before press time. 

Therefore, the anti-risk could continue to gain ground – more so, as the futures on the S&P 500 are now reporting a 0.15% drop. The index futures were up more than 0.20% in early Asia. 

Further, oil prices on both sides of the Atlantic have picked up a strong bid on heightened geopolitical tensions and could weigh over the emerging market risk assets, adding to the bullish pressures around JPY. 

Technical levels