It seems that the further we go, the worse the situation is becoming. Trade war really brings more and more uncertainty and problems into the world. And despite the fact that it is better to stay together and unite against the real world bully – Trump, the countries around the world are beginning to turn on each other and engage into the trade war on their own.

Japan and South Korea are the perfect example of the statement. The two countries which are considered to be tech hubs are starting to engage in less than friendly rivalry which is already being called a trade war between them. It seems that the conflict lies in very deep – the countries have been subtly fighting ever since WWII. But that is not the point here. South Korean economic and political aggression towards Japan are prompting traders to flee to the safest assets which of course leads them to JPY – how ironic!

Right now USD/JPY is trying to consolidate but it is totally possible that we are going to see the chart fall as a result of yen’s new-found strength. Despite the fact that Japanese companies and businesses are going to have to do more work from now on, now that they have restrictions from South Korea – traders and investors do not seem to mind it.

JPY has all the chances in the world to get stronger and stronger as safe havens come more in demand.

Use your trading signals on USD/JPY today.