Media reported yesterday that North and South Korea will hold a summit on April the 27th. Other headlines stated that another summit between North Korea and Japan this time, is also possible. Japanese officials stated though that the summit could depend also on the result of the previous summits. Especially concerns about the Kim- Trump meeting were expressed. As the climate seems to improve and various headlines support that notion, we could see uncertainty in the region slowly fade away.
USD/JPY traded in a sideways manner yesterday with some bearish tones well between the 106.95 resistance line and the 105.55 support line. Please be advised that the pair broke the downward trend-line incepted since the 8th of March on Wednesday and seems to be on a correction phase. We see the case for the pair to continue to trade in that manner as financial data which came out early in the Asian morning were favorable for the JPY. Should the pair come under selling interest we could see it breaking the 105.55 support level. If the par finds fresh buying orders along its path we could see it breaking the 106.95 resistance level and aim for the 108.30 resistance zone.
