For How Traders See North Korean Risk, See Yen Versus Won
- KRW/JPY approaching 200-DMA for first time since November
- Japan’s currency may gain beyond 9 per 100 won, Daiwa says
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Perhaps the best barometer of rising geopolitical risk in East Asia is the outperformance of the yen against the won. And despite some technical resistance ahead, the yen’s strength can continue, according to Daiwa Securities Co.
Japan’s currency has gained about 3 percent against its South Korean counterpart since April 3, when President Donald Trump said the U.S. could act alone to solve the North Korean problem. The currency pair rebounded to 9.65 yen per 100 won Thursday after approaching its 200-day moving average of 9.51 Wednesday.