Currently, USD/JPY is trading at 110.00, down -0.22% on the day, having posted a daily high at 110.31 and low at 109.55.
USD/JPY has dumped on the back of the N.Korean news that they may have been launched another missile that has passed over Japan's airspace. A firm 110 handle has gven way to the news and a low of 109.55 was scored in a knee jerk risk-off reaction in the market.
North Korea's missile launched from an area near Pyongyang
Elsewhere, the US CPI was a booster for the greenback overnight when inflation beat expectations in August, up by 1.9% (y/y). However, eyes will now turn to tonight key data from the US. Analysts at Westpac offered a snapshot at tonight's main events as follows:
"Aug retail sales are expected to increase just 0.1% following a 0.6% jump in Jul. Westpac forecasts a 0.3% gain with stronger consumption growth continuing into Q3. However, there is also an additional risk to this month’s release due to the effect of Hurricane Harvey which came very late in the month. Aug industrial production is expected to rise 0.1%. Production has been in a modest uptrend since mid-2016 but the growth rate is underwhelming relative to elevated PMIs. Sep University of Michigan consumer sentiment is anticipated to maintain a positive level at 96.5."
USD/JPY levels
Valeria Bednarik, the chief analyst at FXStreet explained that in the 4 hours chart, the price remains above its 100 and 200 SMAs, with the shortest gaining upward traction below the largest. US equities and yields hold the key as a strong momentum there will likely help the pair to retest the mentioned high and even extend beyond it. Support levels come as 109.30 and 108.80 while resistance levels are back to the 110.00 level, 110.30, 110.80, 111.05, 111.40 and 111.85.
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