USD/JPY finds a bounce in Tokyo, still down around 108.80

• Yen gains as equities tumble, winning the safe haven battle against the USD.
• BoJ talking heads trying to soothe markets and mitigate Yen gains.

USD/JPY continued the slide that began yesterday, testing the 108.50 region before finding a bounce as the Nikkei is set to post its single biggest-day loss in almost three decades. The pair is currently trading near 108.80, still within the Tokyo session congestion, and still well below the recent slide down the charts that reflect risk sentiment across global markets.

Both the US and Japan have a sparse showing of economic data this week, outside of Initial/Continuing Jobless Claims out of the US on Thursday, and foreign bond investment in Japan on the same day. Price will continue to reflect the market sentiment, with risk aversion driving safe haven assets higher, and the Yen continuing to trump the US Dollar in this category even as Bank of Japan officials desperately try to talk down the Yen with constant market-soothing rhetoric.

USD/JPY Technicals

With the bounce during Tokyo, USD/JPY has priced in a tentative intraday swing support point at 108.50, with 108.95 above acting as resistance. H4 and Daily charts are looking increasingly bearish, with the 200-day SMA beginning to look more and more solid, and the 34 EMA now acting as resistance.

Today's pivot points:
R2: 110.74
R1: 109.90
PP: 109.45
S1: 108.60
S2: 108.15