(Mar 6 Monday) The USD/JPY fell from 114.10 to 113.75 (-35 pips) in Asia and continued to drift lower to 113.57 in Europe as the yen gains after North Korea fired four ballistic missiles into the sea near the northwest coast of Japan. This latest provocation from Kim Jong Un has prompted Japan to raise its defense alert to the highest level.
Pyongyang launched four missiles early Monday morning with three of the missiles falling into Japan's exclusive economic zone, with one dropping 350 kilometers west of the northern Akita prefecture, per Hoshihide Suga, a spokesman from Japan's National Security Council..
Prime Minister Shinzo Abe said, "The launch clearly shows that this is a new level of threat from North Korea. The launches are clearly in violation of UN Security Council resolutions. It is an extremely dangerous action. North Korea's nuclear and missile capabilities have improved, and they are becoming more difficult to predict.. The missiles are getting closer to Japan's waters and territory."
South Korea's acting President Hwang Kyo-Ahn condemned the launch and said Seoul will quickly deploy a U.S. anti-missile defense system. S. Korean authorities said they doubt the missiles were ICBM capable.
Japan's Nikkei Index closed 90 points lower to 19,379 (-0.46%), The USDJPY trades in a narrow range in the European morning session as investors await the next move from the New York market. The U.S. Factory Orders is expected to be +1.1% in March from the prior +1.3% in February to be released at 15:00 GMT.