SAFE HAVEN DEMAND SUPPORTING YEN STRENGTH
The recent flight into safe haven currencies continued to underpin demand for the Japanese yen, with the USDJPY remaining close to the psychological 110 level. The pair slipped to an eight-week trading during Wednesday's U.S session, hitting 109.55.
Tension between the United States and North Korea continue to worsen, after North Korea earlier announced it is “carefully examining” plans for a missile strike on the U.S Pacific territory of Guam.
The USDJPY pair remains capped by the H1 time frame, 50 period moving average, around the 110.17 level, indicating further short-term trading weakness.
Key USDJPY technical support is found at 109.91, which represents the daily pivot point. Below 109.91, the weekly low comes into focus, at 109.56, with the 108.90 level the next relevant support area below.
To the upside, the H1 time frame moving averages dominate, with the 50 period MA at 110.17, and the 100 and 200 period moving average acting as strong resistance between 110.39-41.
Above the 110.41 level, the USDJPY weekly pivot sits at 110.53.