USD/JPY fades back towards 108.00, but risk-off mood remains

• Apple cuts first-quarter profit expectations, citing Chinese slowdown, sparks massive broad-market slide into safe havens.
• Investor fears  of a global growth slowdown are coming home to roost as risk assets continue to plunge.

USD/JPY is currently churning near 107.75 as markets slowly fade the day’s early drop on refreshed global risk aversion, fueled by a disappointing Apple earnings forecast. Investors fearing a steepening global economic contraction were spooked by Apple’s reduction of first quarter profits expectations, citing China’s lagging growth.  

The Dollar-Yen pairing tumbled some 420 pips from the beginning of the overnight session to a low of 104.70, where fade action bounced the pair back to between 107.50 and 108.00, where USD/JPY looks set to continue churning as roiled markets collect themselves and take stock, though broadly bearish market sentiment is unlikely to see the pair make a full recovery unless the Pacific-Asia market session sees a full revival of risk appetite.

USD/JPY Technical Levels