The demand for JPY increased further, pushing the USD/JPY pair below 112.00 levels as the risk-off in European equities triggered a flight to safety. Tests Fibo support The spot dropped to 111.55 (127.2% fibo expansion of May 2015 high – Aug 2015 low – Nov 2015 high) before recovering slightly to 111.80 levels. Euro Stoxx 50 index fell 2% leading to a further rise in demand for the safe haven assets- JPY, Gold and Treasuries. The sell-off could continue if the risk-off hits the Wall Street. The US weekly jobless claims data could receive little attention if the risk-off worsens. USD/JPY Technical Levels The immediate resistance is seen at 112.50, which if taken out shall open doors for a recovery to 113.12 (previous day’s low). On the other hand, a break below 111.55 (127.2% fibo expansion of May 2015 high – Aug 2015 low – Nov 20315 high) would shift risk in favor of a further drop to 111.00 levels. For more information, read our latest forex news.