While there’s quiet on the Korean front, tension remains very high. South Korea will add troops on the 5 islands west of the peninsula that border North Korea, including Yeonpyeong that was the scene of the incident on Tuesday. The South Koreans will allocate a big budget for this.
And the North Koreans don’t remain quiet – they threaten to retaliate to a South Korea’s “path of military provocation” as they say. There’s still no news about who is leading the Northern country – the rumors about the death of Kim Jung Il weren’t denied…
USD/JPY is still trading in the wide 82.87 to 84.11 range as Americans enjoy the Thanksgiving holiday.
More about recent events in the BBC article.