USD/JPY declined sharply on Tuesday as rising geopolitical tensions in the Middle East and the Korean peninsula pushed investors towards safe-haven assets such Japanese yen. Investors were cautious as possibility of some…
USD/JPY declined sharply on Tuesday as rising geopolitical tensions in the Middle East and the Korean peninsula pushed investors towards safe-haven assets such Japanese yen.
Investors were cautious as possibility of some kind of U.S. military action against North Korea in response to its weapons tests grew after U.S. missile strikes against Syria last week in retaliation for a chemical weapons attack on civilians.
The White House said on Monday President Donald Trump was open to authorizing additional strikes on Syria if its government uses chemical weapons again or deploys barrel bombs, while North Korea warned of a nuclear attack on the United States if provoked as a U.S. Navy strike group moved towards the western Pacific.
The pair is set to reach 109.70 and later towards 109.50 in the short term as the US dollar is set to weaken further against its Japanese counterpart in the short term.
To the upside, the strong resistance can be seen at 111.16, a break above this level would take the pair towards next resistance level at 111.57.
To the downside immediate support can be seen at 110.14, a break below this level will open the gates towards next level at 109.58.
