Dollar closed in NY at Y82 98 after posting a high of Y83

USD/JPY

Range: 82.77 – 83.30

Support: 82.50

Resistance: 83.30

Dollar closed in NY at Y82.98 after posting a high of Y83.17 yesterday afternoon. Dollar initially slipped lower in Asia as longs pared back on the stronger Chinese data to a low of Y82.78, but news of a massive earthquake in Northern Japan sparked a strong rally back through Y83.00 to Y83.08 which extended through stops at Y83.20 toY83.30 as the second quake hit an hour later. The dollar has since eased back to Y83.15. Stops remain in place through Y83.60 with bids seen from Y82.80 down to Y82.50 from importers and investors. Aussie-yen opened Y83.04 and dipped initially to Y82.98 before quickly jumping to Y83.22 on news of the first earthquake around 0545GMT extending to Y83.31 as the second quake hit about an hour later. Tsunami warnings are now in place for the entire NE coast of Japan.

GBP/USD

Range: 1.6040 – 1.6078

Support: 1.6000

Resistance: 1.6130

Rate began the Asian session around $1.6060 and gradually edged to session high of $1.6080, with rate tracking euro-dollar moves through the session as euro-sterling was contained around stg0.8600, within a range of stg0.8590/0.8610. Cable settled into a $1.6055/75 through the balance of the session before news of a large earthquake hitting Japan, and affecting Tokyo broke into the European open. Rate was pressed down to mark Asia lows at $1.6046, with momentum taking it on to $1.6043. Rate currently trades around $1.6048 as markets take stock of the quake effects in Japan. Cable demand seen in place toward $1.6030, with further demand expected to emerge in the $1.6020/00 area should we move lower. Below the figure and rate expected to meet demand in the $1.5985/80 area.

Gold and Silver

Thursday saw some major weakness filter into the precious metals as peripheral Eurozone debt concerns were heightened by Moody’s downgrade of Spain and poor Chinese trade data posting a deficit for the first time in 11 months, which in turn sparked a dollar rally and a sharp fall in the DJIA and S&P on the day. Spot Gold opened the day around $1431 and began holding around $1430, but the European open sparked a steady decline, accelerating towards midday with the metal cratering at $1403.10 before picking up into the close at $1412 in NY. Today is scheduled for a “Day of Rage” in Saudi Arabia which could fuel fresh tension throughout the MENA following yesterday’s gunfire aimed at protestors, and fuel a further flight to safe haven assets. Gold has opened in Asia this morning with a rally back to $1417.35 before easing back towards the NY close. Support is now seen at yesterday’s low of $1403.10 and $1400, with a break down of $1392.40 likely to target the 55 and 100 day MA’s currently around $1381 and $1379. Resistance is at $1431.50 and $1436.50

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