FxWirePro: USD/JPY stays below 110 handle, 5-DMA caps upside

• 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.

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