The offered tone surrounding USD/JPY heightened in the European morning, as flight to safety remained the underlying this Thursday as global equities rout returned. USD/JPY: Safe-havens strongly bid The major kept falling as the demand for the safe-haven yen soared as the European equities joined the global sell-off and triggered another wave of risk aversion across the financial markets. At time of writing, USD/JPY trades at 111.18, recording a -1.91% loss on the day. The USD/JPY pair dropped almost 250 pips intraday as the benchmark 10-year treasury yields plummeted to the lowest levels since May 2013 at 1.615%, down -5.40% so far. While the USD index hit a new four-month lows of 95.40. Markets were caught off-guard by the sudden risk-off wave and now prefer to hold the safe-havens such the yen, and thus maintaining the risk around the USD/JPY to the downside ahead of Yellen’s testimony and US jobs data. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 112 (psychological levels). A break above the last, the major could test 112.41 (Nov 2014 High). While to the downside, the immediate support is seen at 110.32 (Daily S3) and below that at 110 (Oct 2014 levels). For more information, read our latest forex news.