- USD/JPY down 0.41% in the Asian session, N.Korean headlines trigger fresh wave of risk-aversion across the financial markets.
- Reuters news cited that N.Korea was spotted moving ICBM-grade rocket towards west coast and possible launch is expected before Saturday.
- Intraday bias in the pair bearish. We see scope for test of major trendline support at 108.40.
- With no major data on cards, the pair's movements will continue to be impacted by the market sentiment.
- Later in the day, FOMC members Brainard, Kashkari, and Kaplan's speeches will be in focus.
- Bullish divergence keeps scope for upside. Cloud on weekly charts is offering strong support, we see weakness on close below.
Support levels - 109, 108.80 (June 14 lows), 108.60 (Aug 18 lows)
Resistance levels - 109.87 (5-DMA), 110.61 (23.6% Fib), 110.95 (Aug 16 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -60.2764 (Neutral), while Hourly JPY Spot Index was at 135.359 (Bullish) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
