Breaking News: USD/JPY breaks 112 handle in risk-off markets, bears target cloud base at 111.45

USD/JPY has just dropped below the 112 handle on the back of Wall Street's sea of red and risk sentiment deteriorating globally. At times of great uncertainty, you have the Yen repatriation effect. 

• USD dollar and yields dropped following the Beige Book that underscores risks of higher rates.
• However, USD/JPY remains bullish while above cloud base support, which lies at 111.45.
• Wall Street falls sharply as technology suffers heavy losses
• Fed's Beige Book - Modest Reasons to Keep Raising Rates

There was something for everyone in the Beige Book, but there are risks of higher interest rates to not only the wider global economy and specifically EMs, but right at home - to the US economy.  

"The Federal Reserve has been candid that its rational for tightening rates is not from a fear of an overheating economy or rising inflation. The governors see a need and desire to ‘normalize’ rates in the context of a future recession. That project remains firmly on track," 

- Joseph Trevisani, Senior Analyst at FXStreet.