While the USD has been strong, so too has the Yen as the ongoing North Korean saga continues to cause issues. After a sell-off early in the week, it looks like the retrace has happened so now we need to locate some short-term opportunities.

For the time being, I’m looking to short spikes to 112.50. We’ve had a number of tests of this level and as is stands we haven’t been able to break through. The BOJ hasn’t changed its policy stance either, meaning that we are getting direction from the USD at the moment.

Janet Yellen’s slightly dovish comments might also help hold down the USD/JPY for the time being.

USD/JPY – 240 min Chart