Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback trades below 12-week maximum against yen as North Korea fears revive
On Monday, the evergreen buck stood still versus the Japanese yen, having rebounded from 12-week maximums reached the previous week. It’s because renewed focus on geopolitical risks amid worries that North Korea might be preparing another missile launch.
North Korea is believed to be preparing another long-range missile test. The given missile is supposed to be capable of reaching the west coast of America.
The newly-revived focus on geopolitical tensions definitely helped to lend support to the safe haven Japanese yen, and also brought the greenback down from its post-US jobs data peaks.
On Friday, the evergreen buck was already in retreat because of profit-taking, when the North Korea-related shocking headlines reached financial markets, exacerbating the US currency’s dip.
The greenback hit 112.56 yen, standing still on the day. As for Friday, that day the US currency had hit a maximum of 113.44 yen, which is the highest outcome since July 14.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.