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Forex - USD/JPY falls sharply before rebounding after Japan nuclear blast

Published 03/15/2011, 03:38 AM
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Investing.com – The U.S. dollar fell sharply against the yen on Tuesday before rebounding, amid mounting concerns over Japan's escalating nuclear emergency, following a third explosion at the stricken Fukushima Daiichi nuclear plant, 155 miles northeast of Tokyo.

USD/JPY hit 81.23 during late Asian trade, the daily low; the pair subsequently consolidated at 81.64, easing up 0.02%.

The pair is likely to find support at 80.57, Monday’s low and a four-month low and resistance at 82.45, Monday’s high.

Following the blast, senior Japanese officials warned that radiation levels around the plant had risen to levels that can damage human health.

Japanese Prime Minister Naoto Kan has urged those living within 30 kilometers of the plant to stay indoors.

In a televised address, Prime Minister Kan said "Substantial amounts of radiation are leaking in the area," urging people to remain calm. "We are making utmost efforts to prevent further explosions or the release of radioactive materials."

Levels in Tokyo were higher than normal, but officials said there were no health dangers.

Meanwhile, the yen was higher against the euro, with EUR/JPY shedding 0.62% to hit 113.51.

On Monday, the Bank of Japan announced that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion in an attempt to stabilize markets in the wake of Friday’s devastating earthquake and tsunami.



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