North and South Korea to hold summit

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.

Hopes grow for inter-Korean talks

Hopes grow for inter-Korean talks as North Koreas ceremonial leader will visit South Korea this week. South Korean prime minister mentioned to US president that good momentum in inter-Korean relationships could continue. Trump on the other hand, agreed that North Koreas participation in the winter Olympics could result in “something good”. Overall, as inter-Korean relationships improve we could see the JPY strengthening as political instability for the region is slowly fading away.

USD/JPY experienced some bullish pressures on Friday, mostly due to the US Employment report, however surrendered some of its gains later on and during today’s Asian morning remaining well between the 111.05 resistance level and the 109.20 support line. We could see the pair continue to trade in a sideways manner with some bullish tone as the pair could be influenced by today’s incoming US financial data. Should the bulls take the driver’s seat we could see it breaking the 111.05 resistance line and aiming for the 112.20 resistance hurdle. On the other hand, should the bears take the reins we could see it breaking the 109.20 support level and aim for the 108.30 support zone.