USD Flows: Tech risk weaker; eying any late USD/JPY pre-holiday adjustment

Quite a notable independent risk off tone overnight as chip stocks run into corrective selling and rotation, the Nikkei off almost 6% and the Nasdaq off around 1.5%. Korea on holiday but they have also hiked rates and tightened leveraged ETF trade over the last 24 hours, to also clamp down on over speculative and wildly volatile action in the Kospi, that could tend to add to the market unwind and sentiment slip.

Not particularly being reflected across in FX where trade is pretty flat, but one to watch if it extends into the new week. VIX is still very subdued on a 17 handle and volatility would probably need to pick up for FX to be treating this as more directional. USD/JPY also fairly sanguine, if checked, trading a tiny flat (doji like) bar today – there might still be time for some squaring into the Japan holiday in the European morning, as seen last time.