USD/JPY: headed to 114.38 or 108.13?

Ross J Burland FXStreet

Currently, USD/JPY is trading at 113.19, down -0.18% on the day, having posted a daily high at 113.47 and low at 112.74.

Bulls were capped just below where offers were sited at 113.50 and N.Korea said that their first intercontinental ballistic missile test was successful. Gold inched up as N. Korea missile launch buoys the safe-haven demand while Yen fell to 112.70/80 where technical bids seemed to have stemmed that earlier risk aversion drop, paring losses and rising above the 113.00 handle again.

Geopolitical tensions escalated after North Korea’s ballistic missile test – Danske Bank

The move off the lows was supported by leveraged names fading a euro-yen drop near 128.00 support, traders in Europe said according to Vassilis Karamanis in Athens, Bloomberg. We are closed in the US today, but the European stocks fell for the fifth time in six sessions on thin trading volume along with the geopolitics in focus.

USD/JPY levels

According to analysts at Commerzbank, USD/JPY is heading towards the 114.00/38 recent highs below or around which it is likely to lose upside momentum again. "Dips should find initial support offered by the 55- and 200-day moving averages at 111.48/32. Where are we wrong? Key nearby support is the 250 day ma at 109.49 and 55 week ma at 109.10, below here, there is scope for slippage to the 108.13 April low."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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