The Japanese Yen strengthened by as much as 0.5 percent on news that National Security Advisor Lt. Gen. H.R. McMaster will resign. The announcement came across wires at about 22:20 GMT. USD/JPY fell below 105.00 for the first time since November 2016 following this latest reshuffle of White House staff.
Rumors of McMaster’s departure appeared as early as last week. It was not confirmed until today however, along with news that his replacement will be former UN Ambassador John Bolton. McMaster’s decision to resign was apparently in the works for some time, according to the New York Times.
This latest move is seen as an effort to reshape President Donald Trump’s advising team ahead of discussions with North Korea. Today’s news also follows his most recent decision to replace Secretary of State Rex Tillerson with Mike Pompeo, who previously served as Director of the CIA.
The impact of this latest shift in White House staff comes after a day of market turmoil, as equities digested the impact of a greater trade war with China as well as political uncertainty emanating from Washington D.C.
Technically with a broad look at a daily chart of USD/JPY, the pair has already broken through the descending channel that began from early 2017, and is looking for a further decline towards next support level on Sept. 2, 2016’s high at 104.316.
Chart 1: USDJPY Daily
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