USD/JPY off lows, unable to holds firm above 108.50

• USD/JPY heads for lowest close since April 26.
• Yen rises amid risk aversion, despite higher US yields.

The USD/JPY tumbled during the American session to 108.34, the lowest level since Friday. Then it rebounded to 108.65 and as of writing, is it hovering around 108.50, still showing a bearish bias in the short-term

The yen is among the top performers of the last hours supported by the decline in equity prices in Europe and in Wall Street. The Dow Jones drops 1.48% and the Nasdaq 0.65% (off lows). The deterioration in risk sentiment boosted the yen.

The rally of the Japanese currency so far was limited probably amid rising US yields. Despite the decline in US stocks, Treasuries are lower. The 10-year yield stands at 1.62%, around the highest level in a week.

The US dollar is also being unable to benefit from risk aversion. The DXY strands at 90.01, near monthly lows. Versus the most traded currencies, the US dollar is posting modest losses, and it has been moving sideways over the last seven hours.

Technical levels