USD/JPY: recovering back onto the 113 handle ahead of FOMC minutes

Currently, USD/JPY is trading at 113.03, down -0.22% on the day, having posted a daily high at 113.37 and low at 112.90.

USD/JPY dropped on risk aversion due to the N.Korea headlines but managed to find support in overnight sessions. However, there was further supply in early Asian trade below the 113 handle. Tokyo has picked up the bid back above the figure in an otherwise lacklustre market environment ahead the FOMC minutes in the US session. 

North Korea's Leader: Country's strategic power has been elevated with possession of atomic, hydrogen bombs and ICBM

The major awaits US trading in cash treasury's opening again as well for further stimulus. USD/JPY may find some action around Chinese Caixin PMIs for June will give a read on the latest activity from the two largest Asia economies, although took little from domestic data in the Japanese Nikkei Services PMI at 53.3 vs previous 53.0.

USD/JPY levels

USDJPY: Use 112.80/113.50 as a range

Valeria Bednarik, chief analyst at FXStreet explained that the short-term picture for the pair shows that the upward momentum eased. "Also that the risk remains towards the upside, as the 100 SMA extends its advance above the 200 DMA, both well below the current level, while the RSI indicator consolidates around 61. Additionally, the pair recovered after briefly breaking below the 23.6% retracement of its latest decline, the immediate support at 112.90."