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The situation in Japan’s troubled Fukishima nuclear reactors isn’t improving. There are fears that the radiation from the plants will not only hurt Japan, but will also cross the Pacific and reach the United States.Nuclear radiation might eventually reach Europe as well. This won’t be in dangerous levels like in Japan (and especially in the capital Tokyo), but it will sure raise the fear bar.

The result may be higher oil prices, now seen as a safer way to produce electricity. Higher oil and nuclear radiation in the US will both hurt the US dollar, even against the Japanese yen. USD/JPY collapsed overnight. Although the recovery was quick, Dollar/Yen is still under 79.75 – the previous historic low.

For more about the yen, see the USD JPY Forecast.