Forex Pros – The euro tumbled against the yen on Tuesday, after Japan’s prime minister said radiation levels near a quake-stricken nuclear plant had become high following an explosion, prompting a broad flight to safety.
EUR/JPY hit 112.81 during European morning trade, the daily low; the pair subsequently consolidated at 112.89, tumbling 1.13%.
The pair was likely to find support at 111.94, the low of February 28 and resistance at 114.82, Monday’s high.
Earlier in the day, an explosion at the No. 2 reactor at the Fukushima Daiichi nuclear power plant, located 155 miles northeast of Tokyo, sent low levels of radiation floating towards the city, prompting some people to flee the capital and others to stock up on essential supplies.
In a televised address, Japanese Prime Minister Naoto Kan urged people within 30 kilometers of the plant to remain indoors and conserve power amid the world’s most serious nuclear disaster since the Chernobyl catastrophe in Ukraine in 1986.
The euro was also sharply lower against the Swiss franc, with EUR/CHF dropping 1.10% to hit 1.2790.
Also Tuesday, speculation was mounting that Japan could intervene to stem the yen’s sharp gains after the Bank of Japan said on Monday that it would double the size of its asset purchase facility to JPY10 trillion yen.
ForexPros.com
