Forex - USD/JPY supported by BoJ rate view, nuclear concerns
Investing.com
Published Apr 04, 2011 03:51AM ET
USD/JPY hit 84.39 during early European trade, the daily high; the pair subsequently consolidated at 84.07, easing up 0.03%.
The pair was likely to find support at 83.11, last Friday’s low and resistance at 84.72, last Friday’s high and a six-month high.
Concerns over radiation leakage from the Fukushima Daiichi power plant, which was badly damaged by the March 11 earthquake and subsequent tsunami, could wipe out Japan's trade surplus and tarnish the status of its safe-haven currency, which used to be the two major factors that supported the yen.
Later in the week the BOJ was expected to discuss launching a credit line to financial institutions in the quake-affected areas. The central bank was also expected to consider further monetary easing to help the economy cope with the aftermath of the March 11 triple disaster.
Meanwhile, the yen was fractionally higher against the euro, with EUR/JPY slipping 0.06% to hit 119.56.
Later Monday, the Chairman of the U.S. Federal Reserve, Ben Bernanke was to speak.
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Written By: Investing.com
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