USD/JPY rises to weekly highs above 109.00 after Trump’s speech

• Market sentiment improves after US President speech on Iran. 
• Demand for safe-haven assets extend slide, Wall Street hits new highs. 

The USD/JPY broke above 108.80 and climbed to 109.10, reaching the highest level since December 30. As of writing, it is hovering slightly above 109.00 with a robust bullish tone 135 pips above the Asian session low. 

Trump’s speech: no escalation, more sanctions 

US President Donald Trump delivered a statement about the crisis with Iran. He started mentioning no American was wounded during the missile attack on military bases in Iraq. He said the US will impose more powerful sanctions on Iran. Trump is now looking for a new deal with Iran and he wants NATO to increase its participation in Middle East operations. 

His words were taken biased toward de-escalating in tensions according to the initial market reaction. Wall Street jumped to new record highs while gold prices tumbled. Crude oil collapsed with the WTI barrel falling under $60.00. 

The Japanese yen tumbled across the board while at the same time the greenback remained strong versus main European currencies but lost ground against emerging market currencies. 

USD/JPY breaks more resistance, back in the recent range 

The pair is trading above 109.10, now looking at the 109.15/20 resistance that if broken, could lead to a test of 109.30. If the greenback keeps rising, the 109.70 zone will again be on the radar. The mentioned level is critical and a daily close on top would open the way to more gains. On the flip side, now 108.85 is the immediate support followed by 108.45 and then comes 108.25.