JPY Daily News

Yen Pulls Back Sharply

The yen continued is move lower versus the majors, booking sharp declines in particular versus the euro, US dollar, and Swiss franc. In the background of yen trading is the unresolved radiation leak at a Japanese nuclear plant that was damaged in the earthquake.

The USD/JPY pushed higher following St. Louis Fed President Bullard's dollar positive comments and continued its appreciation into this morning's trading. The pair closed on its high at 83.00 and has moved above its 200-day moving average. The next resistance level is found at the March high at 83.30, a level that coincides with the trend line off of the September 2010 and this February's high. A breach above this level would target 84.00.

The EUR/JPY broke sharply higher, rising as high as 117.00 in early morning trade. The pair looks to continue to move higher on both fundamentals and technicals. Rising interest rates in the euro zone and a continued loose monetary policy in Japan should support the pair. On the charts, a lack of resistance barriers stands in the pair's way. Initial resistance come is at the March 2010 low at 119.60. Support is found at the early March high at 116.00.

Current Time: 05/27 04:48 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
03/30
	00:15	JPY	Manufacturing PMI		52.9	-	-