The USD/JPY pair reversed N. Korean headlines-led knee-jerk slide to 3-day lows and is now holding comfortably above the key 110.00 psychological mark.
The pair touched an intraday low near mid-109.00s during early Asian session on Friday in wake of the latest N. Korean missile launch, which passed over Hokkaido Island in northern Japan.
Early dip, however, was bought into as the US Dollar was being supported by the latest US CPI print, which bettered expectations and showed a 1.9% y-o-y rise in August.
Thursday's stronger-than-expected rise in consumer prices, though indicated some impact from Hurricane Harvey, was still good enough to lift market expectations for additional Fed rate hike move by the end of this year and helped limit deeper losses, at least for the time being.
Technical levels to watch
A follow through momentum beyond mid-110.00s would assist the pair to make a fresh attempt towards conquering the 111.00 handle. Alternatively, weakness back below the 110.00 mark would turn the pair vulnerable to break below session lows near mid-109.00s and drop towards 109.25 horizontal support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.