Wed, 16 Mar 2011 22:34:00 +0100

Forex: USD/JPY out of control, 76.40 new record low

FXstreet.com (Barcelona) - Despite the operator of Japan's tsunami-crippled nuclear plant said it had almost completed a new power line to restore the electricity to the complex and solve the crisis, so that a meltdown can be avoid, speculators have quickly stepped in sending the Yen surge in a very aggressive fashion against the Dollar.

A new record low at 76.40 was touched, that is, a drop of more than 300 pips in the last hour. BoJ intervention may be taking place anytime. No support hold now the pair. On the upside, the support broken at 79.75 will be now a very reliable resistance.

“These are the massive option-related stop-losses that we’ve been worried about for the last few months. USD/JPY has collapsed and the crosses are following. The BOJ will have to intervene to steady this market but that could be hours away” said Sean Lee at Forexlive.

Technical Analysis (2011-03-16 21:30 GMT)
USD/JPY 77.56/77.61 - O: 82.295 H: 82.31 L: 82.115 C: 82.155
Trend	R3: 77.7744
	R2: 77.5810
	R1: 77.3875
	S1: 76.3936
	S2: 76.5856
	S3: 76.7775