USD/JPY skids 50 pips from the high as stocks and bonds reverse

USD/JPY trims gain to 120.62 from as high as 121.20

The pair remains up a healthy 80 pips on the day but the souring of risk appetite has trimmed gains.

The declines knock USD/JPY back below the 200-day moving average. One support level to watch is 120.41, which was the July low.

In the larger scheme, the inability of USD/JPY and stocks to break the late August highs signals that we remain in a period of consolidation that will likely continue until the Fed meeting.