Morning Preview: North Korean Tensions Ease
Rowan Crosby • 1 min read
After North Korea sent a shudder through markets during yesterday's Asian session, in overnight action markets began the all-too-common retrace. After opening lower, equities rebounded, while the other safe-havens of gold, the USD/CHF and USD/JPY all did an about face.
As tensions appear to have eased (once again) interest now turns to non-farm payrolls which are due for release on Friday morning US time. After a quiet week to date on the data front, there is a bit of news out of Asia. Japan has retail sales, while in Australia we will get a glimpse into the state of the economy with building and construction figures.
Playing the Range
I had a close eye on the USD/JPY in yesterday's trading session and it managed to take out the lows of Asian trade before it ran all the way back to 109 and beyond.
In today’s trade I’ll be looking to work the range between 109.75 and 109.00, with a potential pop to 110.00 in early trade. I’m not anticipating too much action today in the Yen after strong volume yesterday and a large amount of action in overnight trade. However the range should present us with some good trading opportunities.