USD/JPY Analysis: Rebounds from 200-hour SMA at 112.00

Dukascopy Bank Team Dukascopy Bank SA

Beginning of joint drills between South Korean and American armies near North Korean border led to another rise in demand for safe haven assets. Accordingly, the pair has reached combined support created by the weekly PP, the 200-hour SMA and the lower trend-line of a new junior descending channel. This fact point out on the upcoming recovery of the pair. As soon as markets will calm down, the rate is likely to start climbing back towards the 112.50 mark that is surrounded by the 50% Fibonacci retracement level and two other moving averages. However, if the situation on the Korean peninsula will continue to aggravate, the pair might take the opposite direction and try breaking the above support.

Interested in USDJPY technicals? Check out the key levels

1. R3 113.36
2. R2 113.12
3. R1 112.83
PP 112.59
1. S1 112.31
2. S2 112.07
3. S3 111.78

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Dukascopy Bank Team

Dukascopy Bank SA

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