USDJPY tested April 2017 low on fears that Pyongyang (North Korea) would launch another missile test over the weekend, which had added to last Friday’s USDJPY selloff. Last friday Yen had made a low around 107.32 followed by a strong pullback on monday leaving a strong tail on the bar chart again. Its the second time the pattern is repeating on north korea fears with a short term trade setup.
Trading sentiment turned to positive . However a follow through rally is anticipated in USDJPY and has the high probability to establish a short term trend reversal.
Support Zone in USDJPY comes around 107.25. Any possible trend reversal could test a possible resistance zone around 111 in the near term.