It is shaping up to be a rather risk averse session in European trading today. Equities are falling across the board and bonds are being bid quite strongly on the session. Of note, France’s CAC 40 index is now down over 2% with S&P 500 futures down 0.4% on the day. And 10-year yields in the US are down to 4.21% after having been at a high of 4.27% earlier in Asia trading.

That is all weighing on USD/JPY as risk-off flows come into play. The pair traded to a high of 158.25 following the BOJ policy decision but has now pared all gains to 157.00 on the day.

The dollar is holding firmer for the most part despite that though. EUR/USD is down 0.6% to 1.0675 while GBP/USD is down 0.5% to 1.2695 on the day. USD/CHF is lower amid the negative risk mood, down marginally by 0.1% to 0.8930 currently.

Looking to commodity currencies, USD/CAD is up 0.2% to 1.3765 while AUD/USD is down 0.4% to 0.6605 at the moment.

This article was written by Justin Low at www.forexlive.com.