USD/JPY hits session lows as S&P 500 futures drop, Indo-Pak tensions flare

• USD/JPY has hit session lows near 110.75, having hit high of 111.23 yesterday.  
• The anti-risk JPY is being pushed higher amid losses in the S&P 500 futures.  
• Indo-Pak tensions may be adding to the bid tone around the Japanese yen.  

USD/JPY is currently trading at session lows near 110.75, having clocked  high of 11.08 yesterday.  

The anti-risk JPY picked up a bid earlier today, possibly tracking the decline in the S&P 500 futures, which are currently down 0.42 percent on the day.  

Asian stocks are also trading mixed, indicating the US-China trade optimism is fading.  

Further, reports of Indian airstrike in targets in Pakistan seem to have strengthened the bid tone around JPY. Asian currencies will likely take a hit and JPY could rise sharply if Indo-Pakistan tensions escalate into a war.  

Looking ahead, the focus remains on the sentiment in the stock markets ahead of Fed’s Powell testimony, scheduled in the NY session.  

The central bank head is expected to reiterate “patience” on interest rate hikes and may offer clues on how long the Fed needs to be patient and how it plans to end its quantitative tightening program.  

Technical Levels