- President Trump canceled the Summit planned with North Korean Leader Kim.
- The news triggered flows to the safe haven yen and lower levels are eyed on USD/JPY.
US President Donald Trump canceled the June 12th Summit planned with North Korean Leader Kim Jong-un. In the past week, there has been some bad blood between the countries. John Bolton's call to apply the Libya model to North Korea angered the regime. Also, the military drill planned by South Korea and the US angered them and Kim called off a coordination meeting.
While the US and South Korea canceled the drill, tensions remained high. North Korea also made a gesture of destroying its nuclear testing facility. Nevertheless, US Secretary of State Mike Pompeo said the US made no concessions and North Korea called Vice President Mike Pense an "idiot".
The signs were on the wall but the news that Trump canceled the Summit still sent shockwaves and triggered safe haven flows into the Japanese Yen, even though the trouble is close to home. The missiles North Korea tested flew over Japan.
USD/JPY technical picture - getting worse
The USD/JPY is trading around 109.30, extending the drops seen earlier. On its way down, the pair confirmed the break outside the uptrend channel (black lines on the chart). The RSI, which was flirting with the overbought territory, was already sliding and it now around 50. However, Momentum is still positive.
The next line of support is at 108.60, which was a low point on the way up in early May. Further down, the 200-day Simple Moving Average awaits at 108.10. It is followed closely by 107.60 which was a swing high in April.
Looking up, the pair faces resistance at the now broken line of 109.50, which was a low point this week. The round 110.00 level is next, followed by 110.50.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
AUD/USD bears in the market, chipping away into key support
AUD/USD bulls look to the 38.2% Fibonacci of the prior bearish leg and then 0.6725 which guards a continuation higher. Bears are in the market and eye a move deeper into support.
EUR/USD bears flirt with golden Fibonacci ratio, focus on 1.0765-60
EUR/USD seesaws around 1.0830-20 as the key Fibonacci retracement level probes bears during early Friday, following the Euro pair’s U-turn from a seven-week high the previous day. The Euro marked the first daily loss in six on Thursday as it failed to cross the two-month-old horizontal resistance area surrounding 1.0930-35.
Gold aims to shift business above $2,000, US Durable Goods Orders eyed
Gold price is oscillating in a narrow range of $1,990-2,000 in the early Asian session. The precious metal is struggling to shift its auction above the psychological resistance of $2,000. However, the upside looks favored as the Federal Reserve (Fed) has come closer to halting its policy-tightening cycle.
Arbitrum airdrop flops, but ARB still makes it to a commendable all-time high. Here’s what happened
The token launch for Arbitrum was quite bumpy, to say the least after users could not claim their airdrop tokens for the first one hour post-launch. The turn of events was very disappointing, given that users had been waiting for a week for the highly-advertised ARB airdrop.
Is the banking crisis over, or is the worst yet to come?
When the Fed started signalling higher for longer last summer, everybody assumed that the first thing to break would be consumption, followed by big job losses. Few anticipated that the banking sector would get caught up in the crossfire of the Federal Reserve’s battle against high inflation.