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Forex - EUR/JPY falls to daily low after new Japan quake

Published 04/11/2011, 05:53 AM
EUR/JPY
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EUR/CHF
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Investing.com – The euro erased against the yen on Monday, retreating from an 11-month high, after reports of a strong earthquake and a small tsunami warning in Japan boosted demand for the safe haven yen.

EUR/JPY retreated from 123.31, the pair’s highest since May 5, to hit 122.37 during European morning trade, shedding 0.27%.

The pair was likely to find support at 121.32, Friday’s low and resistance at 123.31, the days high and an 11-month high.

Earlier in the day, the 7.1-magnitude quake triggered a brief tsunami warning and forced workers to evacuate the crippled Fukushima nuclear power plant. The epicenter of the quake was in Fukushima prefecture and struck at a depth of just 10 kilometers.

It came as Japan said it was extending the evacuation zone around the nuclear plant because of radiation concerns. Early indications suggest the plant has not sustained further damage in the latest quake.

Meanwhile, the euro was fractionally higher against the Swiss franc, with EUR/CHF easing up 0.11% to hit 1.3144.

Later in the day, the Federal Reserve Bank of Chicago President Charles Evans was to speak. Also Monday, Federal Reserve Governor Janet Yellen was to speak.

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