The USDJPY pair has stabilized around the 110.30 level, after earlier dropping to 109.54, as North Korea fired another missile over Japan, which landed into the Pacific Ocean, sparking financial markets fears over escalating geopolitical tensions.
Yesterday, the USDJPY pair moved to a six-week trading high, hitting 111.04 during the U.S session, following a stronger than expected increase in August CPI data from the United States economy.
Going forward, a higher time-frame close below the 109.90 level should accelerate USDJPY selling, whilst a higher time-frame close above the 110.68 level should accelerate buying above the 111.04 level.
To the upside, key technical USDJPY resistance is found at 110.68, 110.80 and the 111.04 level. Once above 111.04, key weekly resistance is found at 111.40 and 111.65.
Key intraday technical support is located at the daily pivot point, at 110.18 and the key 50-day moving average, at 109.95.
Below the 109.95 level, further support is found at the daily low, at 109.54, and the 200-hour moving average, at 109.28.