Regional tensions in Asia have been steadily risen over the past few weeks as US President Donald Trump aims his sights on diminishing the tough rhetorical taken by Pyongyang.
The increase in uncertainty regarding North Korea’s leadership brought about a fresh round of selling in the dollar early last week, pushing the greenback below the psychologically key 200-day moving average of JPY 108.80 with analysts at UBS reckoning that the recent weakness is unlikely to end soon.
With the Euro heavily undervalued, investors could jump on to the common currency at the first signs of an ECB decision to taper asset purchases further, adding to the prevailing dollar softness according to notes written for clients.
USDJPY is down in early Monday trade, and was last seen trending around 108.350 with major support below sitting at around 107.550.
Dollar Reaches 5-Month Low Against Yen
Daily Analysis - 17/04/2017