Is JPY Really a Safe Haven on This Occasion?

It’s a conundrum: Despite Japan being a likely target of freshly erupting North Korean ire, traders still see the yen as a safe-haven play, and they’re pushing the currency higher.

The yen has surged, with the dollar fetching as little as 109.71 yen in Asia trade, down from 110.82 overnight. The dollar/yen was at 109.88 at 11:21 a.m. HK/SIN.

That’s in stark contrast to another country likely on the North’s target list, South Korea, which saw its currency, the won, markedly drop. The dollar was worth as much as 1,137.10 won in Asia trade on Wednesday, up from as little as 1,125.37 won earlier.

CNBC

CAC Slides as North Korea Rumbles Spook Investors

DAX Slips on North Korea Tensions

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.