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."