3 April 2001, 17:30 * USD/JPY slid from an overnight high of 126.83 to 125.53
* USD/JPY slid from an overnight high of 126.83 to 125.53 as the USD
softened and amid talk of a 125.50 option expiry at 1400 GMT. The pair
found a platform at 125.50 from the Gann 50-point pivot that targets
125.00 and 126.00.
Finance Minister Kiichi Miyazawa said no U.S. officials have called
for an end to the strong-dollar policy. He was speaking after the dollar
hit a 29-month high of 126.84 against the yen in New York Monday.
Meanwhile, Japanese officials have started signaling that they would
like to support the yen because of concerns over the economic and
diplomatic consequences of a sharp depreciation in the Japanese currency,
the Wall Street Journal reported in its Internet edition. The Finance
Ministry is increasingly concerned about the rapid weakening of the yen,
according to the paper.
The BOJ announced it will hold two-day policy meetings from April
12-13, in order that its decisions are announced during Japanese trading
hours. Chairman of the LDP's Special Committee on Emergency Economic
Measures, Aizawa, said Japanese banks must dispose of new bad loans within
two years and old bad loans within three years.
The outlook is mixed, with traders looking to trip stops either above
126.00 or below 125.50.
Support: 125.53 (overnight low), 125.50 (Gann 50-point pivot; targets:
125.00/ 126.00), 124.00 (Gann 50-point pivot; targets: 123.50/124.50),
122.50 (Gann 50-point pivot; targets: 122.00/123.00), 122.51 (20-day
moving average), 121.05 (Gann 50-point pivot; targets: 120.55/121.55),
119.65 (Gann 50-point pivot; targets: 119.15/120.15), 119.00 (38.2%
Fibonacci retracement level of the August 1998-December 1999 downtrend),
118.77 (60-day moving average).
Resistance: 126.83 (overnight high), 126.84 (April 2 high; 29-month
high), 127.91 (resistance line rising since October), 128.55 (Gann
50-point pivot; targets: 128.05/129.05).
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