USDJPY RISES ABOVE 110 AS NORTH KOREAN TENSIONS EASE

The USDJPY pair has soared above the key 110 level, after North Korea's leader stated that he would delay plans to fire a missile near Guam, easing tensions and prompting investors to move back into the U.S dollar.

At present the pair has moved to a four-day price high, hitting 110.27 during the Asian session. Traders now look to the release of U.S retail sales data later, with the market expecting a solid 0.4 percent increase for the month of July.

The USDJPY pair is strongly bullish on an intraday basis, however the medium term bearish bias remains intact while price remains below the 111.65 level.

Key technical resistance is found ahead at 110.50, and the former swing high, at 110.82. The 200-week moving average acts as critical resistance, at 111.35.

Downside support is found at the 200-hour moving average, at 110.04, and the August 8th price high, at 109.80. The daily and weekly pivot points are converging, to offer joint support at the 109.62 level.