The escalation in tensions on the Korean peninsula beg the question, should one buy or sell JPY? I think the obvious trade is to buy USD/JPY as the USD generally is seen as the safe haven trade in times of trouble and of course the JPY, along with the KRW, is the currency most likely to be affected by any conflict in the region. Buying EUR/JPY or any of the other JPY crosses is probably not such a good idea as they are seen as “risk trades” and geo-political tensions will lead to broad risk aversion in the markets.