US Dollar/Japanese Yen Tumbles As VIX Index Hits New High, Dow Plunges Below 9,000

USD/JPY has tumbled down for a test of 100.00 and could break lower as the markets remain extremely jittery, as indicated by a surge in the CBOE's VIX Volatility Index to a new record high of 60.13 and a drop in the Dow Jones Industrial Average below 9,000 to an intraday low of 8,859.78. The coordinated rate cuts that we saw enacted yesterday by a variety of central banks including the Federal Reserve, European Central Bank, and Bank of England has has done little to boost investor confidence. This leaves signficant bullish potential for the Japanese yen across the majors.

VIX Index (Daily Chart)

Source: Bloomberg

Dow Jones Industrial Average (Intraday Chart)

Source: Bloomberg