Japan nuclear headlines brings USDJPY to an all-time low!

All attention was on Japan again last night as the nuclear fear became stronger. USDJPY set an all-time low of 76.25 last night after continued headlines related to the nuclear reactors in Japan and when the EU’s energy said things are “out of control” in Japan and that there could be a catastrophe in a matter of hours. There was no sign of the BOJ as USDJPY rebounded to around 79.

Euro weakened as well during the flight to safe havens. Moody’s downgrade of Portugal by two-notches to A3, outlook negative brought the rating into line with S&P.

UK February claimant count came in better at -10.2k, and the unemployment rate was unchanged at 4.5%.

We do have quite a lot of data coming out tonite from the U.S. Overall it still looks like bearish market considering the Japan nuclear issue hasn’t been resolved yet. I do expect BOJ to intervene at some point, as USDJPY can’t remain so strong for Japan. It’s been an extremely difficult week to get trades in, a lot of the movement seems to happen when I’m not watching the market, and I am a little wary of placing market orders for new positions.

Data Today

US CPI – 12.30pm GMT

US initial jobless claims – 12.30pm GMT

US Industrial production – 1.15pm GMT

US Philadelphia Fed index – 2pm GMT

Happy Trading!

FxTaurian