Yen surges for second day, USD/JPY drops below 156; oil and gold rise

Today's market highlights:

• Japanese yen is the top performer, while the US dollar is the weakest today.
• WTI crude oil gained 2.2%, reaching $93.02.
• The US 10-year Treasury yield fell 2 basis points to 4.774%.
• Gold rose 1.3% to $4,443.
• European stock markets are trading mixed, and S&P 500 futures are unchanged on the day.
• Bitcoin edged up 0.6% to $77,897.

The Japanese yen is without question the biggest mover today. USD/JPY opened near 159.00 in early Asian trading but has since dropped by almost 300 pips, touching a low of 155.85 earlier in the session. The pair has moved in a single direction throughout the day after sliding below the 158.00 level.

Japan's chief currency official, Mimura, did not comment on whether a rate check occurred, but such a check appears to have taken place either overnight or earlier today. Market participants are clearly taking the warning seriously, and may already be experiencing some impact from a modest intervention by Tokyo. This is pushing USD/JPY lower by 1.6% to 156.10 at present.

Meanwhile, ongoing US-Iran tensions are still supporting oil prices. WTI crude has risen more than 2% to $93, while Brent crude is up 1.5% to above $97 today.

Even so, bond yields continue to ease from their overnight highs. This is providing some relief to broader markets ahead of the US non-farm payrolls report due tomorrow.

The 10-year US Treasury yield is 2 bps lower at 4.774%, and the 10-year Japanese government bond yield has also fallen back to 2.97% today. In Europe, Germany's 10-year yield is slightly lower at 3.35%, while France's stands at 4.22%. This appears to be a retracement for now, so market sentiment remains cautious.

This cautious mood is mirrored in equities, as US futures remain subdued ahead of the open. European stock indices are showing a mixed performance so far today.

Elsewhere, gold is staging a modest rebound, rising 1.3% to $4,443. In cryptocurrencies, Bitcoin is also slightly higher, up 0.6% at $77,897 today.