USD/JPY Volatile

In the late August the Japanese Yen entered a period of high volatility amidst rising tensions between North Korea and Japan, namely the provocation with the passing ballistic rocket above Japan. In light of this, the Japanese Yen has depreciated against its counterparts.

The USD/JPY registered a climb from 108.26 to a high of 110.16. The pair is now trading at 109.91 as traders and investors are on the look for potential triggers that can make them take the defensive side and sell the Yen.

As to the downside, if the situation settles, we can expect to see the pair reach the support zone at 108.80. The trading environment in all markets now is significantly uncertain as we are entering September and market participants are anticipating new developments, events and policies that will hint a direction where the world economy is headed.

Chart: USD/JPY H4