USD/JPY N.Korea advance capped at familiar Tenkan reistance

USD/JPY is better bid and risk is off to a good start in the Tokyo session on the back of the latest headlines that N.Korea will allow the US military exercises to continue and how committed N.Korea is to denuclearization making for big optimism in markets. 

Trump, Kim Jong-un to meet soon - South Korean National Security Advisor

Currently, USD/JPY is trading at 106.39, up 0.13% on the day, having posted a daily high at 106.46 and low at 106.16.

• South Korean national security chief Chung says Trump said will meet with Kim by May.
• Washington - Chung says Kim understands that routine US.-south Korea military exercises must continue.
• Washington - Chung says Kim will refrain from future tests.
• Chung says North Korea's Kim is committed to denuclearization.
• South Korean national security chief Chung says he briefed trump on the visit to North Korea.
• Chung says pressure will continue on North Korea until it matches its words with concrete actions.

However, at the same time, the Japanese headlines soured the mood when markets heard the Japanese response to Trump's tariffs today, saying that they will respond appropriately after examining steel tariffs:

• The US decision on tariffs lightly to have a big impact on US cooperative times and the world economy, souring the potential relationship between the two world leaders and nations. 

For the close in the benchmarks, the S&P index climbed 0.45% or 12.17 points to 2738.97 while the Nasdaq added 0.42% or 31.296 points to finish at 7427.945 and the Dow put up  0.38% or added 93.85 points to close at 24895.21.The US 10yr treasury yield dropped 4bp, from 2.89% to 2.85%, and the Fed fund futures continued to price three more hikes by end-2018 (with March a 90% chance).

USD/JPY levels

The price is now up to test 106.51 daily Tenkan that if broke, could quickly bring in the 107 handle, a level that has not been tampered with by the bulls since the start of the month. Thereafter, the 107.80/90 level guards 108.00. On the wide, the 110.85 is key ahead of and 111.44/50 as being a double Fibonacci retracement that is lining up with a lower and descending 200-D SMA at 111.30. to the downside, the 105 handle guards 104.80 that opens up space on the charts with little support on the way down 100.70/99.00 on the charts.