USD/JPY tumbles to lows, finds some support near 106.00 handle

   •  Escalating trade tensions prompt some aggressive safe-haven buying.
   •  Selling now seems to have abated near the 106.00 handle.
   •  US ADP report and ISM PMI eyed for some fresh impetus.

Having refreshed weekly tops, the USD/JPY pair took a sharp U-turn and quickly dropped nearly 70-pips from session high level of 106.69.

A fresh wave of a global risk-off move, triggered by renewed worries about a full-blown US-China trade war, prompted some aggressive safe-haven buying and underpinned the Japanese Yen. 

China's decision to impose retaliatory tariffs on two of the highest valued US exports to China escalated trade tensions on Wednesday and took some shine off the US Dollar, which further collaborated to the pair's sharp fall over the past hour or so.

The selling pressure seems to have abated a bit, with the pair finding some support near the 106.00 handle as investors now look forward to the US economic releases - ADP report and ISM non-manufacturing PMI for some fresh impetus.

Technical levels to watch

Any subsequent weakness is likely to find some support near the 105.75-65 region, below which the pair could accelerate the fall towards 105.35 support area en-route the key 105.00 psychological mark.

On the upside, mid-106.00s now seems to act as an immediate hurdle, which if cleared might trigger a short-covering bounce and lift the pair further towards reclaiming the 107.00 handle.