• The equity rout prompted investors to seek shelter in safe-haven currencies, including the yen

• USD/JPY dropped to 157.27 in Asia, but has subsequently recovered to 158.33 in London, EBS data shows

• The daily cloud, that currently spans the 157.17-158.44 region, continues to underpin USD/JPY

• A break above the 159.03 September 24 peak would be a very bullish development

• EUR/JPY 30- and 60-day log correlations with USD/JPY are high, remains above +0.5

Daily Chart


Correlation Chart

(Martin Miller is a Reuters market analyst. The views expressed are his own)