Yesterday North Korea successfully tested a hidrogen bomb and U.S. responded that any threat to them or its territories or allies will be met with a massive military response. That's clearly an escalation but won't morph into something bigger because I don't see how that could benefit anyone.

Risk pairs, including USD/JPY, opened the week with a big gap lower. Half of the gap has already been closed but the pair stalled ahead of 110. If it continues, 110.4 could be the next stop. 109.5 is the initial support.

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