The pair USD/JPY slows down its downward correction with the speech of Trump but the rebound remains tentative.
After a start to the week, rising to reach a peak of 111.87, USD/JPY has started a correction today, coming under the area of 111.60/50.
A hollow intraday has been touched at 111.19, before beginning to rebound while the President, Trump presented himself before the UN.
Donald Trump has not made any announcement that’s important to remember, but the geopolitical tensions, including North Korea remain clearly bright.
The US President said that there would be no other choice than to «destroy totally» the North Korea if Kim’s regime does not stop its nuclear weapons program. The United States does not wish to get there, according to the President, but the country has the military means to do so and will do so if necessary.
These threats were not accompanied by an ultimatum or a deadline to cease all nuclear activity, which limits the increase of tensions.
USD/JPY continues to try to go up, but finds a barrier towards the 111.50/60.
A break above would trigger the rise towards 112.00, 112.30 and then 112.50.
In case of failure extended below, we could find the drop in the direction of 111.00/110.75, which will be an important area of support that it will need to hold to prevent a bearish reversal in the short term.
The pair USD/JPY is currently trading at 111.46 on the Forex.
Chart USD/JPY H1