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USD/JPY forms a temporary base near the 106.90-107.00 region

   •  Fresh global growth worries trigger 'flash crash' during the Asian session.
   •  Thin liquidity exacerbates the move and triggers massive stop-losses.

After a rather volatile swing during the Asian session, the USD/JPY pair now seems to have formed a temporary base near the 106.90-107.00 region.

The Japanese Yen continued benefitting from the global flight to safety amid heightened worries about the global economy, further fueled by a rare revenue warning from Apple Inc. 

Apple lowered its sales forecast for the latest quarter, citing slowing iPhone sales in China, which against the backdrop of a series of disappointing Chinese macro data added to concerns about fading global demand.

A sudden spike in risk-aversion trade triggered massive stop-losses and thin liquidity conditions exacerbated the move, contributing to the pair's near 420-pips collapse during the Asian session on Thursday.

The pair touched an intraday low level of 104.69, its lowest since March 2018, before recovering some of the losses as trading progressed, though struggled to make it back above the 108.00 handle.

Today’s US economic docket, featuring the release of ADP report and ISM manufacturing PMI, will influence the US Dollar price dynamics and provide some trading impetus later during the North-American session. 

Technical levels to watch

USD/JPY

Overview:
    Today Last Price: 107.54
    Today Daily change: -1.5e+2 pips
    Today Daily change %: -1.41%
    Today Daily Open: 109.08
Trends:
    Previous Daily SMA20: 111.71
    Previous Daily SMA50: 112.6
    Previous Daily SMA100: 112.33
    Previous Daily SMA200: 111.08
Levels:
    Previous Daily High: 109.76
    Previous Daily Low: 108.71
    Previous Weekly High: 111.41
    Previous Weekly Low: 110
    Previous Monthly High: 113.83
    Previous Monthly Low: 109.55
    Previous Daily Fibonacci 38.2%: 109.11
    Previous Daily Fibonacci 61.8%: 109.36
    Previous Daily Pivot Point S1: 108.61
    Previous Daily Pivot Point S2: 108.13
    Previous Daily Pivot Point S3: 107.55
    Previous Daily Pivot Point R1: 109.66
    Previous Daily Pivot Point R2: 110.24
    Previous Daily Pivot Point R3: 110.72

 

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