investingLive European markets wrap: Japanese yen surges higher for second straight day

Headlines:USD/JPY extends fall today in drop back below 158, what's next?Bond yields pull back from the highs as focus turns to US jobs report nextWTI Crude Oil Price Analysis: Bears Favored Below $90Gold upside remains limited by Fed rate hike risks and Iran war; traders await US CPI for next directionNasdaq's fate hinges on US CPI and Middle East conflict as growth expectations deteriorateSwiss inflation nudges up in August amid higher energy pricesEuro area business activity keeps steadier in August, reaffirms ECB policy pathwayMarkets:JPY leads, USD lags on the dayWTI crude up 2.2% to $93.02US 10-year yields down 2 bps to 4.774%Gold up 1.3% to $4,443European indices mixed; S&P 500 futures flatBitcoin up 0.6% to $77,897The big mover today is no doubt the Japanese yen. USD/JPY started the day sitting close the 159.00 level in early Asia but is now down by nearly 300 pips, with the low earlier touching 155.85 on the session. It has been one-way traffic all the way through after a tumble below the 158.00 mark earlier today.Japan's top currency diplomat Mimura declined to comment about a rate check but that seems likely either overnight or at least from earlier today. And markets are definitely heeding the warning, if not already feeling some pinch from a light intervention move from Tokyo. That is sending USD/JPY down by 1.6% to 156.10 currently.Besides that, US-Iran tensions continue to persist and that is keeping oil prices underpinned. WTI crude is up over 2% to $93 with Brent crude up by 1.5% to above $97 on the day.Despite that, bond yields are at least coming off the boil still since overnight trading. And that is helping to give broader markets a bit of a breather ahead of the US non-farm payrolls tomorrow.10-year Treasury yields are down 2 bps to 4.774% with 10-year Japanese government bond yields also slipping back to 2.97% today. In Europe, 10-year yields in Germany are down slightly to 3.35% and in France they are down to 4.22%. It still all seem to be a bit of a retracement for now, so the overall market mood remains on edge.And that is reflected in the equities space with US futures still holding more tepid ahead of the open. Meanwhile, European indices are looking more mixed on the day so far.In other markets, gold is seeing a modest bounce back with the precious metal up 1.3% to $4,443. And in crypto, Bitcoin is also holding slightly higher being up 0.6% to $77,897 on the day. This article was written by Justin Low at investinglive.com.