Home USD/JPY halts at resistance following earthqauake
Forex News Today: Daily Trading News

USD/JPY halts at resistance following earthqauake

A 7.4 magnitude earthquake struck Japan and triggered tsunami alerts. Also, some cooling systems at nuclear reactors were suspended to prevent damage. So far, there are no reports of fatalities.

The breaking news about the  earthquake, after the US session ended and as Tokyo was just waking up caught markets in low-liquidity mode – at around the same time of day when the GBP flash crash  occurred. Until that point, the greenback seemed unstoppable against the yen, even as it took a breather against other currencies.

The rally of the greenback is based on Trumponomics  but may run out of steam.

However, the worrying news out of Japan cut the rally short. USD/JPY stopped at 111.40, the levels seen back in late May. The pair trades at 111. Support is at 110. Further below, we find 107.50. Resistance awaits at 112.

Is this just a longer breather? Assuming the earthquake is  indeed not a real disaster, will the rally resume? Or will the yen now stabilize like its peers?

More: USD/JPY set to reach 115.50  – Danske


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.