- Trump cancels the summit with Kim and says: “the world has lost a great opportunity for lasting peace” and JPY is gaining on risk-averse trading.
- Trump is ready to impose 25% tariffs on imported vehicles to the US while the second round of trade talks between US and China lead to no conclusive agreement.
USD/JPY is falling again on Thursday as US President Trump said that it was “inappropriate at this point to have a summit (with North Korea)”. He said that he canceled the meeting with the North Korean leader Kim Jong Un based on “the tremendous anger and open hostility” in Kim's recent statements. “The world and North Korea, in particular, has lost a great opportunity for lasting peace and great prosperity and wealth. This missed opportunity is a truly sad moment in history.” Trump wrote.
USD/JPY has been falling off from the 110.00 handle in Asia and is finding an intraday floor at the 109.00 handle at the time of writing. The pair is down about 0.80% on Thursday.
Earlier in the week, Vice President Pence said that Kim would "end like the Libyan model" if he didn't stop the nuclear weapon program. Kim called Pence's remarks "ignorant" and "stupid," and threatened to call off of the talks. Libyan dictator Moammar Gadhafi abandoned his nuclear weapons against sanctions relief in 2003 and he was killed by rebels eight years later.
Additionally, Trump recently said that he is planning to impose 25% tariffs on imported vehicles while the trade talks with China are not leading to any positive agreement; all adding to the Yen safe-haven demand.
USD/JPY 4-hour chart
The pair is trading below its 50 and 100-period simple moving averages (SMA) and is testing the 200-period SMA on the 4-hour chart. The main trend remains bullish but bulls will need to create a base in the 108.50-109.00 region to keep the market from falling further. Supports are seen at the 108.64 swing low and at the 107.79 swing high while resistances are seen at the 109.50 swing low and the 110.00 handle.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD holds above 1.0650 amid renewed selling pressure in US Dollar
The EUR/USD pair edges higher to 1.0672 on Thursday during the early Asian session. The recovery of that major pair is bolstered by renewed selling pressure in the US Dollar and a risk-friendly environment.
Gold dips on falling US yields as traders shrug off hawkish Fed remarks
Gold prices retreated from close to weekly highs during the North American session on Wednesday amid an improvement in risk appetite. The bullish impulse arrived despite hawkish commentary by US Federal Reserve officials.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin price is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
Australia unemployment rate expected to rise back to 3.9% in March as February boost fades
Australia will publish its monthly employment report first thing Thursday. The Australian Bureau of Statistics is expected to announce the country added measly 7.2K new positions in March after the outstanding 116.5K jobs created in February.