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Forex - USD/JPY rebounds from near record low after Japan quake

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Forex Pros - The U.S. dollar rebounded from close to a record low against the yen on Monday, after the Japanese government warned of intervention measures to stem sudden yen gains in the aftermath of Friday's massive earthquake and tsunami in northeast Japan.

USD/JPY clawed back up from 80.64, the pair's lowest since November 9, to hit 82.09 during late Asian trade, gaining 0.32%.

The pair was likely to find support at 80.23, the low of November 1 and the pair's all-time low and resistance at 83.29, Friday's high.

Earlier in the day, a senior Japanese finance ministry official warned of the possibility of intervention in the currency market to stem yen rises, saying authorities "will take decisive steps if necessary." Separately, Finance Minister Yoshihiko Noda said that now was the time to monitor the yen's movements.

The Bank of Japan offered to inject JPY7 trillion of funds to the short-term money market via a same-day operation, the largest ever for such an operation. The bank also committed to increase the size of its fund pool for buying assets and conducting market operations backed by collateral by JPY5 trillion, to JPY40 trillion.

Also weighing on the yen were mounting concerns over safety failures at a number of Japanese nuclear reactors following Friday's disaster.

The yen was also down against the euro, with EUR/JPY climbing 0.51% to hit 114.37.

Also Monday, Moody's Investors Service said that Japan may "at some point" reach a fiscal "tipping point" if investors lose confidence in the soundness of public finances and demand a risk premium on government bonds.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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