The U.S dollar has opened the new trading week sharply lower against the Japanese Yen, as risk-off sentiment returned to forex markets after North Korea successfully tested a nuclear capable hydrogen bomb over the weekend.
So far, the USDJPY has fallen as low as 109.50, with the pair opening the week, gap down, on the price charts. Markets are likely to be increasingly driven by headlines, coming from the worsening situation in the Korean peninsula.
The USDJPY pair is currently trading around the 109.80 level, with price trading below daily and weekly 50,100 and 200 period moving averages.
Key intraday technical support is found at the 200-hour moving average, at 109.59, the 109.30 level, and the crucial 108.60 level.
To the upside, resistance is found at the M5 time frame 200 period moving average, at 110.02.
Above 110.02, the top of the weekly price gap is found at 110.24, with further USDJPY resistance found at 110.59 and 110.84.
