Media suggested yesterday that president Trump announced his intentions to meet with North Koreas leader Kim Jong UN marking a dramatic breakthrough. The announcement was made after the North Korean leader’s intentions to suspend further missile testing were announced. The place and time are still to be announced, however officials stated that it should happen within the next few months. The announcement boosted the Japanese market and JPY weakened against the US Dollar. We see the case for the trend to correct and stabilize somewhat and the pair to return to normal trading levels.
USD/JPY rose yesterday’s Asian day tested the 106.95 resistance line. We see the case for the pair to trade in a sideways manner today with some bullish tendencies. Please be advised that the pair may prove to be quite sensitive to fundamental news as US employment data are to be released later today and the headlines about Korea continue to reel in. Should the pair come under selling interest we could see it reaching the 105.55 support level. Should it find fresh buying orders along its path we could see it breaking the 106.95 resistance line and hover above it.