USD/JPY sees brief drop to 200-hour MA support on North Korea news

  • North Korea news put a temporary bid under the anti-risk JPY, driving USD/JPY down to the 200-hour MA of 111.49.
  • The key average has held ground and the pair has risen back to 111.65, possibly tracking the resilience in the S&P 500 futures. 

USD/JPY is currently trading at 111.65, having tested the 200-hour moving average (MA) support of 111.49 a few minutes before press time. 

The anti-risk JPY picked up a bid about 40 mins ago on reports stating that North Korea's Kim Jong Un may rethink suspension of missile launches, which was initiated last year. 

USD/JPY's drop to 111.49, however, was short-lived, possibly because the news barely moved a needle on the S&P 500 futures, which are currently trading 0.25 percent higher on the day. 

That said, the pair is still reporting a moderate loss on the day and is trading well below the highs near 111.90 seen earlier today. Looking forward, the focus remains on the 10-year treasury yields, which is trading at 2.64 percent at press time, having clocked a three-month low of 2.59 percent earlier this week. 

The USD/JPY pair will likely revisit session highs if the 10-year yield resumes recovery. 

Technical Levels

    1. R3 112.68
    2. R2 112.26
    3. R1 111.98
  1. PP 111.56
    1. S1 111.28
    2. S2 110.86
    3. S3 110.58


 

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