- USD/JPY has retraced dip below 110 handle, breaks above 50-DMA at 110.48.
- The pair is nearly 100-pips off North Korean news-led swing lows at 109.54.
- The market seems to have looked past N. Korea's latest missile launch that flew over Japan into the Pacific Ocean.
- Also, Thursday's stronger-than-expected CPI print (despite Hurricane Harvey's impact) lifted market expectations for additional Fed rate hike.
- Focus now on US monthly retail sales data for August for further impetus.
Support levels - 110.48 (50-DMA), 110.19 (5-DMA), 110.06 (38.2% Fib retrace of 114.49 to 107.31 fall)
Resistance levels - 110.96 (Weekly 20-SMA), 111.13 (100-DMA), 111.75 (61.8% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-edges-lower-from-4-week-highs-at-11073-focus-on-US-CPI-data-for-further-impetus-899162) has hit TP1.
Recommendation: Stay long for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 61.2486 (Neutral), while Hourly JPY Spot Index was at -120.782 (Bearish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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