Swiss Franc and Yen accelerate higher in European as risk aversion appear to intensify again. Major European indexes are down more than -2% at the time of writing, while US futures also reversed earlier gains.
In response to the heightened risk aversion, there is a massive flight-to-safety in bond markets. US 10-year yield has hit the lowest level since February and threatens to take out 3.5%, while Germany 10-year yield also broke the 2.2% handle, hitting the lowest level since early February.
GBP/CHF breaks through an important support level at 38.2% retracement of 1.0183 to 1.1574 at 1.1043. Deeper fall is expected to lower channel support (now at 1.0922). Decisive break there could prompt downside acceleration to 61.8% retracement at 1.0714.
USD/JPY’s strong break of 38.2% retracement of 127.20 to 137.90 at 133.81 and 55 day EMA argues that whole rebound from 127.20 has completed at 137.90. Deeper fall should be seen to 61.8% retracement at 131.28. Sustained break there will raise the chance of resumption of whole fall from 151.93 through 127.20 low.
