USDJPY MOVES AWAY FROM 6 WEEK HIGH
The USDJPY pair has moved back towards the 113 level in early Tuesday trading, after hitting a six week trading high in Monday trading. The pair moved to 113.47 during the U.S session, after a robust ISM survey helped lift the U.S dollar index over 0.6%.
Mild USDJPY profit taking, and a reported North Korean ballistic missile test close to Japanese waters, has helped move the pair lower. Financial markets now look to the release of the FOMC minutes, and the G20 summit of leaders in Germany.
Lower time frame price indicators are starting to turn lower for the USDJPY pair, indicating a possible correction towards the 200 day moving average at 112.69.
In the short term, the USDJPY pair retains a bearish bias whilst trading beneath the daily pivot point at 113.09, with the medium term USDJPY bullish bias still intact, whilst the pair trades above the 112.69 level.
Technical resistance for the pair is found at the 113.30 level and the May 15th price high at 113.85.
Support for the pair is located at the 200 day moving average at 112.69, and the H4 time frame 20 period moving average at 112.55.