North Korea sparking concerns for investors again, yen to strengthen further?
|Heading into the open of Tokyo, it is worth noting that North Korea has resurfaced as a geopolitical concern again on the back of the upcoming US-South Korea military exercises which N.Korea say are "reckless behavior driving the situation into the uncontrollable phase of a nuclear war."
While markets wait to see what the US will do next, the yen could well be an attractive safe haven for investors. Meanwhile, analysts at Brown Brothers Harriman explained the dollar fell against the yen for the past three sessions last week:
"The two days of gains at the start of the week lifted the dollar to JPY111, the high seen earlier this month, and those gains interrupted a four-day decline of the previous week. By the end of the week, the greenback was flirting the lower end of the range since last November. The dollar reached JPY108.60 before the weekend. The low from April was near JPY108.10 and the low in June was near JPY108.85. The JPY107.85 area corresponds to the 61.8% retracement of the rally since the spike low last November (~JPY101.20). In terms of a correction of the entire Abenomics era move, the JPY106.60 area is the 38.2% retracement."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.