USD/JPY: Yen underpinned amid N.Korea nuclear news

The USD/JPY pair manages to bounce-off lows and regain 102 handle, although remains deep in the red amid broad yen strength.

USD/JPY supported above 20-DMA at 101.86

The Japanese yen staged a solid comeback against its American counterpart this Friday, after risk-off moods gripped the markets on reports that North Korea conducted nuclear tests.

Today’s drop in the USD/JPY pair was also on the back of renewed weakness in the greenback across the board, triggered by tumbling treasury yields. At the time of writing, USD/JPY moved-off lows to hover around 102.08 levels, still down -0.38% on the day.

While BOJ Governor Kuroda’s remarks following his meeting Japan’s PM Abe had little impact on the Japanese currency. In the day ahead, all eyes will remain on North Korea nuclear tests-related news flow, which may influence JPY flows ahead of the Fed speak due later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.36 (5-DMA). A break above the last, the major could test 102.74 (50-DMA). While to the downside, the immediate support is seen at 101.39 (Sept 8 low) and below that at 101.18 (2-week lows).