USD/JPY trims gains, but holds above 200-day MA

• USD/JPY has dropped 25 pips from the session high of 110.50.
• Risks falling below the 110.00 if Trump-Kim Summitt fails to produce anything worthwhile.

The USD/JPY pair has backed off from the four-day high of 110.50 but still holds above the 200-day moving average (MA) of 110.17.

Japanese exporters' selling from 110.50 seems to have weighed over the USD/JPY, according to a Reuters report. Also, according to latest reports, North Korea's Kim Jong Un avoided answering a question on denuclearization during his one-on-one talk with the US President Trump. That may have put a bid under the anti-risk JPY.

Still, the pair is holding just above the 200-day MA of 110.17. The optimism swirling around the Trump-Kim Summit had pushed the anti-risk Japanese Yen lower across the board in Asia.

The currency pair could drop below 110.00 if the nuclear Summit fails to produce anything worthwhile, pushing the stock markets lower across the globe.

USD/JPY Technical Levels

Resistance: 110.49 (session high), 111.00 (psychological barrier), 111.40 (recent high).

Support: 110.17 (200-day MA), 110.00 (psychological support), 1008.98 (ascending 50-day MA).