USD/JPY hits seven-week lows under 108.00 as markets panic

• Yen soars across the board amid risk aversion, heads for strong weekly gains. 
• US dollar posts mix results; DXY flat for the day, off weekly lows. 

The USD/JPY tumbled to 107.73, almost two hundred pips below Asian session levels. It then rebounded back above 108.00 as equity prices in Wall Street trimmed losses. Volatility across financial markets remain elevated. 

A run to safety boosted the Japanese currency, making yen’s crosses crash. The Dow Jones has recovered over the last hours after being down more than 3%. Still, it remains under pressure. 

The dramatic moves seen in financial markets continue to favour the demand for the yen, the Swiss franc and bonds. Gold and crude oil are falling 3% and 4.60% respectively, adding to weekly losses. 

The week is about to be the worst for global financial markets since the 2008 financial crisis. USD/JPY trades almost 350 pips below the level it had a week ago. Now it is pointing to the 2020 low after trading at nine months highs just seven days ago. 

Technical levels