Japanese Yen Stronger Amid North Korea Risk
Today we see the Japanese Yen strengthening amid heightened risk emanating from North-Korea tension versus Trump. The North Korea Foreign Minister said that Donald Trump has declared war on Pyongyang and they can take defensive measures such as shoot down US bombers.
The USDJPY came down to support at 111.46 and should that be breached then next support is at 111.12. The currency pair is on a downtrend and the chances favor the downside extension towards support at 111.12.
Elsewhere, the US dollar remains strong, the EURUSD is testing support at 1.1830 and should the is breached then next support is at 1.1777, alternatively prices could rebound to resistance at 1.1870. The Euro is under pressure after the German Federal Elections as there is uncertainty in Germany about what government will Angela Merkel Form and the rise of the extreme right wing and anti-EU AfD spread worries among investors. Thus, seems difficult for the support at 1.1830 to hold its ground.
The British pound versus the greenback is still in a range between 1.3616 and 1.3460. Attempts to breach 1.3460 failed with prices returning in the sideways boundaries. In addition, the fourth round for Brexit between UK and EU started this week. The AUDUSD is in a downtrend with next support at 0.7900. The currency pair is weighted by expectations that the Fed would increase interest rates.
For today we look at major economic releases look at US New Home Sales and later today Federal Reserve Chairwoman Janet Yellen speaks.