FxWirePro: USD/JPY briefly dives below 105 handle post Apple-Inc news driven ‘flash crash’, recovery struggles below 108

USD/JPY chart on Trading View used for analysis

• USD/JPY dived nearly 420 pips to slip below 105 handle within a matter of seconds.
   
• A rare revenue warning from Apple Inc. triggered a ‘flash crash’ in holiday-thinned currency markets.
   
• The news keeps demand for the safe-haven Yen at full steam amid widespread risk-aversion.
   
• The spot has recovered some ground, but the recovery attempts are being sold off below 108 handle.
   
• The pair has tested 200M SMA at 104.81, hit 10-month lows at 104.74 before paring some losses to currently trade at 107.08.
   
• Caution prevails as markets expect the Bank of Japan could intervene in the fx markets after the biggest Yen surge in nearly 10 years.
   
• Focus now also on the U.S. ADP jobs and ISM manufacturing PMI numbers for a fresh take on the US economy. 

Support levels - 106.75 (78.6% Fib), 104.81 (200M SMA), 104.62 (Mar 2018 low), 104

Resistance levels - 108.41 (61.8% Fib), 109.37 (5-DMA), 111.04 (200-DMA)