Rate initially marked highs in Asia at 1 4007 before reversing

USD/JPY

Range: 1.3961 – 1.4007

Support: 1.3870

Resistance: 1.4020

Rate initially marked highs in Asia at $1.4007 before reversing, the move lower given an added nudge as Moody’s announced a downgrading of Portugal, taking the rate to initial lows of $1.3970. Rate recovered to $1.3990 only to meet reported sovereign supply, the rate trading to a session low of $1.3961. Move down given added weight as risk positions were pared on reports that work on the damaged nuclear plant at Fukushima was suspended due to a high level of radiation (workers returned later). Rate got an added lift into this session, taking rate back up to $1.4000.Option linked offers seen placed around $1.4020, with stops noted above.

EUR/USD

Range: 80.69 – 81.18

Support:80.50

Resistance: 81.70

Dollar opened in Asia at Y80.76 and picked up in early trade on some Japanese retail demand assisted by some aussie-yen buying in continuation of some late real money demand last night. The pair climbed to a high of Y81.18 before meeting supply and eased back to trade in a $80.75/00 range for the remainder of the session. Support is seen at Y80.50 with bids from real money accounts below ahead of a presumed barrier at Y80.00. Large stops are placed on a break of the level. Traders expect a sharp move lower through Y80.00 would likely stir some intervention action from the BOJ.

GBP/USD

Range: 0.9884 – 0.9962

Support: 0.9850

Resistance: 1.0000

Opened in Asia at $0.9895 with early demand from corporate accounts and macro funds allied to some cross buying in aussie-yen helping the aussie to a high of $0.9952. Stocks gains also assisted but turned down later in the session which prompted some aussie selling apparently from Asian sovereigns on rebalancing requirements. Talk of further radiation problems and fires at nuclear reactors in Japan set momentum with the pair falling back sharply to $0.9889, but rallied again to $0.9948 later. Sell orders are in place at $0.9950 and $0.9970 with some stops lying just above parity. Bids are now seen towards $0.9880/85.

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