FxWirePro: EUR/JPY recovers from 20-month lows at 118.82, safe-haven yen in demand amid widespread risk-aversion

EUR/JPY chart on Trading View used for analysis

• EUR/JPY slumped to a 20-month low below 119 handle as markets clinged to safe-havens amid widespread risk-aversion.
   
• A rare revenue warning from Apple Inc. triggered a ‘flash crash’ among JPY pairs in holiday-thinned markets.
   
• Investors clammered for the safe-haven Yen as worries over a global economic slowdown heightened after Apple's revenue guidance.
   
• EUR/JPY touched lows of 118.82 before paring some losses to currently trade at 121.50.
   
• Technical studies are in support of further weakness. Next bear target lies at 78.6% Fib at 115.77.
   
• That said, caution advised as there is a chance that the Bank of Japan will intervene in the fx markets after the biggest Yen surge in nearly 10 years.

Support levels - 121, 120.01 (61.8% Fib), 115.77 (78.6% Fib)

Resistance levels - 124.74 (5-DMA), 125.40 (Trendline), 126.54 (21-EMA)