Wed, 06 Apr 2011 03:54:00 +0200

Forex: Sharp losses for the Yen; AUD/JPY catalyst

FXstreet.com (Barcelona) - The Japanese Yen is unable to weather the selling storm that kicked in since the close of the New York session. At the opening of Tokyo, the short positions on the currency increased another bit, leading JPY crosses to extend losses.

However, the catalyst that sent JPY rates to succumb even further was the critical was seen in the AUD/JPY, where the price managed to pierce through resistance at 88.08 to post fresh 2 ½ year high at 88.70. The spike in the pair came minutes after Australia showed a much worse than expected home loans report.

USD/JPY has also been catapulted north, reaching new six month highs at 85.50. GBP/JPY, EUR/JPY followed suit, clearing out 139.50 and 121.50 respectively. Investors sought higher-yielding assets using the Japanese currency as a funding currency.

Technical Analysis (2011-04-06 01:30 GMT)
AUD/JPY 88.64/88.65 - O: 86.005 H: 86.025 L: 85.91 C: 85.985
Trend	R3: 88.6661
	R2: 88.4456
	R1: 88.2250
	S1: 87.7292
	S2: 87.9496
	S3: 88.1700