In result of combination of technical factors and fundamental events, the currency pair made a turn around a broke though the bottom boundary of a previously dominant ascending channel. From technical point of view, the rate encountered a resistance level formed by the monthly R2 at 112.54 and the upper boundary of a long-term falling wedge. From fundamental perspective, the new threat from North Korea only accelerated depreciation of the buck.
In the short run the currency rate might try to restore some lost positions, using the 100-hour SMAs or the monthly R1, as a springboard. But, in general perspective, the pair is expected to enter into a new long bearish phase.
