YEN SOARS ON NORTH KOREAN TENSIONS
The Japanese Yen has moved to a four-month trading high against the U.S dollar, hitting 108.33, after North Korea fired a missile that flew over directly over Japan, further escalating tensions in the Korean peninsula.
At present, the USDJPY pair is trading around the 108.80 level, with traders now awaiting a response to North Korea's provocation, as fundamental developments dictate the directional bias of risk-assets.
From a technical perspective, the USDJPY remains strongly bearish below the 109 level, with traders now watching higher-time frame price closes below the 108.60 support level.
Key technical support below the 108.60 level is found at, 108.33, the April 17th price low, at 108.13, and the 61.8 percent Fibonacci retracement of the 118.66 swing high to the 98.99 swing low, at 106.60.
To the upside, key intraday resistance for the USDJPY pair is found at the daily pivot point, at 108.99. Above the 109 level, the 50-hour moving average is located, at 109.20, with the weekly pivot point just above, at 109.28.