Another test of another North Korean ballistic missile expectedly led to sharp depreciation of the Dollar against the Yen. During the downfall the pair crossed the weekly S1 at 112.19, which was the only support barrier on its way. However, this active selling had a short term effect, as by the end of the day the buck traders managed to restore lost positions and return the rate back to the 112.50 level. Because of the Fed Meeting Minutes traders with bullish sentiment most probably are going to try to push the pair to the top. However, even in case of hawkish comments it would not be easy, as northern side remains protected by a combination of the 55-, 100- and 200-hour SMAs plus the weekly PP at 112.81. In addition to that, the North Korean problem hasn’t gone anywhere.
