Opened in Asia at $78.90 and edged down to Y78.84

<p>  USD/JPY Range: 78.83 – 81.93 Support: 81.00 Resistance: 82.30 Opened in Asia at $78.90 and edged down to Y78.84, but intervention from the BOJ at 0000GMT […]</p>


Range: 78.83 – 81.93
Support: 81.00
Resistance: 82.30
Opened in Asia at $78.90 and edged down to Y78.84, but intervention from the BOJ at 0000GMT curbed any further fall in the dollar with the pair flying to Y81.49. The communiqué from the G7 statement supported joint coordination by central banks which has added purpose to the BOJ’s actions, particularly with Japan on holiday on Monday. The pair then slipped back to Y81.06 before resuming a climb to Y81.93 with further Sovereign. Further moves from the ECB, BOE and Fed are likely later in the day. The move also promoted a sharp rally in Asian stocks. On a further note the UN agreed a no-fly zone over Libya with possible military action to follow and Japan appears to have radiation levels back towards normal levels at the reactors at Fukushima, but the battle to control overheating at the reactors remains.



Range: 1.3980 – 1.4088
Rate dropped back below $1.4000 in early Asian trade as the BOJ/MOF conducted well advertised dollar-yen buy intervention. The move up in the dollar initially weighed back on euro-dollar, taking rate to session lows of $1.3980 before comments from FinMin Noda suggesting the ECB could also join the action in early Europe, possibly via euro-yen buys. This comment spiked euro-yen higher, taking euro-dollar through Thursday’s high of $1.4053 and on to $1.4088. Move took out a barrier at $1.4075 but move faltered ahead of next barrier at $1.4100. However, one trader notes that decent buy stops reside on a break of $1.4090, seeing no notable sell interest until $1.4150. Rate currently trades back around $1.4065 in early Europe, with market wary of fresh intervention as European markets begin.



 Spot Gold rallied steadily yesterday from opening levels around of $1392 and closed the day around $1404 largely on a weaker dollar, but has since risen in the overnight Asian markets on safe-haven buying as the UN imposes a no-fly zone over Libya and oil prices rally sharply. Asia has taken the metal to $1413.50 as Europe opens for business with the price currently trading a fraction higher at $1413.80. Resistance ahead is now seen at $1417.30 and $1430.70 ahead of the all time high of $1444.95 seen on Mar 7. Support is now at $1390.80 and $1386.85.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.