The dollar sank from Y81.80 to Y81.22 driven by speculative selling in the euro-yen and aussie yen crosses

<p>  USD/JPY Range: 81.22 – 82.05 Support: 81.00 Resistance: 82.30 The dollar sank from Y81.80 to Y81.22 driven by speculative selling in the euro-yen and […]</p>


Range: 81.22 – 82.05
Support: 81.00
Resistance: 82.30
The dollar sank from Y81.80 to Y81.22 driven by speculative selling in the euro-yen and aussie yen crosses, before a sharp spike upwards on rumors that BOJ was checking rates but this has yet to be confirmed. PM Kan warned of the rising risks of further radioactive leaks which added to the overall bearish market tone. The pair recovered to Y81.70 before meeting some supply, and fell back again to Y81.40 before steadily building higher to $81.87 as the Nikkei recovered from earlier losses of over 14%. Dollar has since slipped again ahead of the European open to Y81.66. Traders are wary of power cuts and further scares, which has led to very illiquid trading conditions amid fears that the radiation leaks may spread to Tokyo.
Range: 1.3892 – 1.4000
Support: 1.3800
Resistance: 1.4030
Risk aversion, prompted by increased concerns over nuclear fall out from the Fukushima plant, saw euro-dollar squeeze lower as it reacted to the heavy selling seen in the Nikkei. Rate found initial support around $1.3937, bounced to $1.3960 before pressing lower again as euro sales via the crosses added weight, taking euro-dollar to session lows of $1.3892. Recovery met initial resistance around the earlier base at $1.3937, edging on to $1.3945 into early Europe before getting pressed back to $1.3920/15. Above and rate can edge on to $1.3975/80 ahead of stronger area above $1.4000.Germany ZEW due at 1000GMT, but events in Japan, MENA and the later FOMC announcement to overshadow.
Range: 1.6054 – 1.6184
Support: 1.6000
Resistance: 1.6230
Rate had been pressured higher through the NY session, helped along by Fitch affirming the UK AAA status as well as keeping outlook stable, with good demand seen into last night’s London 1600GMT fix. Rate squeezed lower from the opening Asian high at $1.6185, meeting initial support at $1.6097 before recovering to $1.6135/40 into the European open. Early Europe sold back into the recovery, taking the rate through the overnight lows to $1.6080. Rate currently seen holding around the $1.6087 pivot. Support seen at $1.6080, more at $1.6069 (76.4% $1.6028/1.6200), and while rate can be held by the $1.6087/69 area keeps hopes alive for another recovery attempt. Light data calendar for the UK, attention more set on developments in Japan and MENA, with focus on Germany ZEW at 1000GMT ahead of FOMC at 1815GMT later on.

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