Due to increasing hostile rhetoric between the US and North Korea about mutual destruction, the Yen got another momentum to try to return to the 111.38 level.
But this attempt was neutralized by the 100-hour SMA near 111.72. Because of this support, the buck started restoring its lost positions but once again failed to break above the monthly R2, which is located at the 112.55 level.
In the first half of the day, the pair is likely to fall towards a combination of the above 100-hour SMA and the updated weekly PP at 111.90.
Afterwards, the buck is expected to try to make a rebound and make another attempt to break through that strong resistance level.
But from a general perspective, the rate should enter into a clearly red zone.
