USD/JPY around 109.70, risk-off trade persists

The Japanese safe haven stays on a firm note on Wednesday, now dragging USD/JPY back to the key 109.70 region.

USD/JPY weaker on NK jitters

Fresh safe haven inflows keep sustaining the upside momentum around the Japanese currency today, all in response to heightened effervescence between the US and North Korea regarding threats of an attack to Guam.

In the meantime, renewed geopolitical jitters are collaborating with the second consecutive daily decline in spot, which is now meandering the lower end of the broader 108.80/114.50 range prevailing since mid-June.

Today’s decline in the pair is all about JPY demand, as the greenback tracked by the US Dollar Index remains steady in the mid-93.00s after climbing as high as the 93.80 region on Tuesday in the wake of a strong JOLTs figures in June.

In the data space, US mortgage applications, advanced Q2’s non-farm productivity and unit labor costs are due later in the NA session ahead of the EIA’s report on US crude supplies.

USD/JPY levels to consider

As of writing the pair is retreating 0.58% at 109.70 facing the next support at 109.66 (low Aug.9) seconded by 109.01 (low Jun.7) and finally 108.81 (low Jun.14). On the other hand, a surpass of 110.48 (10-day sma) would open the door to 110.99 (23.6% Fibo of 108.81-114.51) and then 111.06 (high Aug.4).