USDJPY RISK REVERSAL
The USDJPY pair has moved above the 109.79 resistance level, hitting 110.17, as risk-on sentiment returned to financial markets, as fears faded after yesterday's missile launch by North Korea.
After bouncing from a four-month trading low, of 108.27, the USDJPY pair is now trading back above the former weekly price high, ahead of the U.S ADP jobs report, and second quarter U.S GDP figures.
The USDJPY pair is bullish in the short and medium-term while trading above the key 109.79 level, with the pair remaining bearish in the long-term, below the 111.40 level.
Intraday technical resistance is located at 110.17 level, the H4 time-frame 200 period moving average, at 110.37. The daily and weekly time frame 50 period moving averages converge, between 110.95-99.
To the downside, USDJPY intraday technical support is located at 109.42, with the daily and weekly pivot points offering dual support, between 109.25-28.
Below 109.25, the 108.60 level becomes the main support area traders should watch.