USDJPY TESTING FAMILIAR GROUND
The USDJPY pair is currently consolidating around the key 112.60 level, as the U.S dollar index pulls back and investors remain cautious that Pyongyang may launch another missile test this week.
Going forward, the intraday trading sentiment surrounding the USDJPY pair is neutral, with a lack of market-moving data on the U.S economic docket and Japanese financial markets away for Health-Sports Day bank holiday.
The USDJPY pair rose to 113.44 on Friday, as the United States unemployment rate hit a sixteen-year low, while annual and monthly U.S wages grew strongly.
Going forward, the U.S dollar is likely to drive the pair this week, with the U.S economy releasing key inflation data and the Meeting Minutes from the Federal Reserve's September meeting.
Key intraday technical resistance is found at the USDJPY daily pivot point, at 112.70 and the former swing high, at 112.90. Once above 112.90, further resistance is found at 113.25 and 113.44.
To the downside, key USDJPY intraday technical support is found at the pairs weekly pivot point, at 112.40 and the Friday swing low, at 112.33. Once below 112.33, further support is seen at 112.02 and 111.86.