The USDJPY rebounded from 139.00 as the risk profile deteriorated due to Russia-Poland tensions

After a slight decline to roughly 139.00 in the Tokyo session, the USDJPY pair has detected buying interest. Following a test of the previous week's low around 138.30, the asset experienced a powerful purchasing response on Tuesday. After invading Ukraine, Russian military attacks expanded to NATO member Poland, causing a decline in market sentiment.

This resulted in a good recovery of the US dollar index (DXY) as investors sought refuge in safe-haven assets to avoid extreme volatility. After reaching a new three-month low near 105.35, the mighty DXY began to attract offers.

Further escalation of Russia-Poland relations will give market participants with renewed impetus. In the meantime, Polish President Andrzej Duda stated that what occurred was an isolated incident and that there are no indications that today's episode would be repeated. As well as scheduling a meeting with NATO ambassadors, the Polish government has maintained its risk-averse stance.

S&P500 futures are exhibiting losses in Tokyo following Tuesday's erratic volatility. It appears that geopolitical tensions have a negative impact on the 500-stock index. In addition, the announcement of US Retail Sales will keep index futures on edge. According to preliminary forecasts, the economic data will increase to 0.9% from 0% in the previous release. The DXY could be pleased by robust demand amid rising interest rates and a fall in the inflation rate in October.

On the Tokyo front, the aftereffects of a GDP drop are anticipated to keep the Japanese yen groggy. The GDP fell 0.3% in the third quarter, contrary to expectations of a 0.3% expansion.