This from a note from JP Morgan on the weekend developments (nuclear test)

  • Immediate reaction appears to be similar to last week, USD/JPY fell early, before giving up those initial declines in trading later in the day
  • Situation seems to be escalating

More

  • "While immediate reaction may be relatively muted, concerns toward September 9 will make it difficult to hold yen short positions heading into the weekend"

(Note - September 9 is North Korea foundation day, "Day of the Foundation of the Republic")

  • USD/JPY upside likely capped around 110.40
  • Downside near year low around 108.20
  • Breach of 108.13 would require more serious developments

via Bloomberg
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Updates:

  • UST futures higher as trade reopens after the weekend
  • S&P500 emini futures down around half a percent as trade reopens on Globex after the weekend

USD: