North Korea suspends talks with South

Media suggest that during today’s Asian morning North Korea announced the suspension of the Inter-Korean negotiations. Main reason cited, were the join S.Korea-US military exercises which were considered as a provocation. North Korea’s move casts doubts also on the Kim-Trump meeting on June 12th in Singapore, marking a serious retreat to the warming ties trend. It could also be the case that the move consists a diplomatic maneuver of the North Korean side, to gain leverage ahead of the Kim-Trump meeting and the negotiations. Further escalation could set the progress of denuclearization of the Korean peninsula in jeopardy and strengthen safe havens.

USD/JPY rose yesterday breaking the 109.76 resistance level and tested the 110.45 resistance line. We see the case for the pair to continue to trade in a bullish market albeit at a slower pace as the USD has a good momentum. Should the pair continue to find fresh buying orders we could see it breaking the 110.45 resistance line and aim for the 110.95 resistance level. Should it come under selling interest we could see the pair dropping and reaching if not breaching the 109.76 support line.