• USD/JPY declined on Tuesday as investors bought safe Japanese yen after North Korea fired a missile over northern Japan, fuelling worries of fresh tension between Washington and Pyongyang.
   
• North Korea has conducted dozens of ballistic missile tests under young leader Kim Jong-Un, but firing projectiles over mainland Japan is its first since 2009.
   
• The United States, Japan and South Korea considered that launch to have been a ballistic missile test while North Korea said it was a rocket carrying a communications satellite into orbit.
   
• Investors are looking to how Trump will react to North Korea, and to his push for tax reforms. He is expected to begin a major effort this week to convince the public of the need for them.
   
• The ongoing downside is set to continue for this pair as the resistance level at 108.97 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 108.69, a break above this level would take the pair towards next resistance level at 108.97.
   
• To the downside immediate support can be seen at 108.43, a break below this level will open the gates towards next level at 108.12.
  
  Resistance Levels
  
  R1: 108.69 (50% Retracement level)
  
  R2: 108.97 (61.8% Retracement level)
  
  R3: 109.29 (Daily high)
  
  Support Levels
  
  S1: 108.43 (38.2% Retracement level)
  
  S2: 108.12 (23.6% Retracement level)
  
  S3: 108.00 (Psychological levels)