Yen pairs (flash crash) amid rising global slowdown fears

3 Jan 2019 10:14 AM

The yen rallied against other currencies on Thursday, breaching basic technical support levels, as it took seven minutes for the yen to rise at nearly a decade.

In the first minutes of the opening session Thursday, the yen jumped 8% against AUD to its highest level since 2009 to 0.6776, and rose 10% against Turkish lira, while jumping against US dollar to its highest level since March 2018 at 104.96 before The USD/JPY will recover its losses after a period of trading begins. The Japanese yen has risen by at least 1% against all of its rivals.

Comes at a time when liquidity has declined with the continuation of the New Year's holidays for four consecutive days. The main reason for the yen's rise was a rise in risk aversion and increased demand for safe-haven currencies such as the Japanese yen on the back of rising concerns about slowing global economic growth.

Apple also cut its sales forecast for the fourth quarter of last year, citing a slowdown in IPhone sales in China, raising concerns about a drop in global demand. This was followed by a series of surveys that showed weak factory activity in most parts of Europe and Asia in December.

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