USDJPY HOLDING 113 DESPITE RISK-OFF SENTIMENT
The USDJPY pair continues to trade above the key 113 level, despite North Korean tensions escalating during the overnight session. North Korea leader Kim Jong-un released a strongly worded statement to the United States, to coincide with July 4th, Independence day.
North Korea also confirmed it had conducted a test of a newly developed intercontinental ballistic missiles, that can carry a nuclear warhead. The USDJPY pair briefly dipped to 112.80, however the pair soon regained the 113 handle, and currently trades around the 113.10 level.
The USDJPY pair remain bullish in the medium and long term, however the pair remains bearish in the short term whilst trading below the 113.13 level.
The calculated daily pivot point is currently located at 113.13, which coincides with the M5 time frame 200 period moving average.
Key technical resistance for the USDJPY pair is found at 113.48, 113.90 and the May swing high at 114.31.
To the downside, the 200 day moving average offers strong support, at 112.71. Below 112.71 the H4 time frame 50 period moving average comes into focus at 112.23.