Thursday, March 17, 2011

Dollar/Yen Drama Today

The move last night, between the NYSE close and the Tokyo open, was shocking, down about 5% in 20 minutes.

Dollar/yen has been trending lower during this nuclear disaster.  Many thought 80 would be the level defended by Japan intervention but 77 is three handles below that.  Japan has too many spinning plates in the air right now so they probably left their hands off the steering wheel and simply let it drop.  Looks like the 77 level will be the defendable bottom identifying the area of future Japan intervention.

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