FxWirePro: USD/JPY reverses recent rally as rising N.Korea tensions rattle investors, outlook bearish

• USD/JPY declined on Wednesday as heightened tensions between the United States and North Korea stoked demand for safe-haven Japanese Yen.
   
• North Korea on Wednesday said it was considering a missile strike on the U.S. Pacific territory of Guam. That threat followed President Donald Trump's remarks on Tuesday that any North Korean threat to the United States would be met with "fire and fury.
   
• The greenback slipped to 110.11 yen, its lowest in nearly two months against the Japanese currency.
   
• The currency pair is trading at 109.95 levels, it is set to decline further towards 109.60 and later 109.20 levels in the short term.
   
• To the upside, the strong resistance can be seen at 110.62, a break above this level would take the pair towards next resistance level at 111.04.
   
• To the downside immediate support can be seen at 109.92, a break below this level will open the gates towards next level at 109.50.
  
  Resistance Levels
  
  R1: 110.27 (50% Retracement level)
  
  R2: 110.62 (61.8% Retracement level)
  
  R3: 111.04 (Aug 4th high)
  
  Support Levels
  
  S1: 109.92 (38.2% Retracement level)
  
  S2: 109.50 (23.6 % Retracement level)
  
  S3: 119.00 (Psychological levels)

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