Tragic Earthquake in Japan

Markets went a little haywire on Friday after the unfortunate earthquake in Japan. Price action was pretty much dominated by this news. USDJPY initially spiked higher when the earthquake first struck but faded towards the downside once trader’s realized repatriation flows will pull yen lower.

Euro gapped higher from NY close of 1.3910 to 1.3978. Euro zone leaders made a number of Euro positive announcements over the weekend. Leaders pledged to increase EFSF capacity to EUR440 bn, and agreed to lower interest rate charged on Greece’s rescue package.

JPY crosses collapsed as well as Japan retail segment sold aggressively and stop=losses triggered on the downside. BOJ is likely to prove 2,000 – 3,000 bn yen in funds through its market operations to soothe markets.

It’s going to be an interesting week, and I’m still watching the news closely over what’s happening in Japan with the nuclear problems. I’m praying for everyone in Japan to hold strong over this tough time.

Data Today

Eurozone Industrial Production - 10am GMT

Happy Trading!

FxTaurian