It’s obvious that the traders’ attention is now far from FOMC and its . Geopolitics is the major issue for today. Friday is passing by under the egis of safe-heavens.
JPY, CHF and gold grew across the board. USD/JPY lost almost 100 points, dropped below the strong support line at 112.00 and touched session lows near 111.65 in the European morning.
During the last couple of hours the pair has been trying to get back the psychological mark 112.00 which seems unlikely for today. Further slide might open the door to the intermediate support near 111.43.
But, usually the entire story with the nuclear tests ends with stabilization. So, it’s quite possible that USD/JPY will make a U-turn and surge towards the fresh highs.