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Forex: USD/JPY recovers from 96.00 break down

FXstreet.com (Barcelona) - JPY/USD is currently at 96.68, off recent fresh 6-day lows at 95.71, following the 97.00 round level break down after the risk aversion move post-Boston marathon attacks. The pair is down -1.72% so far for the week since previous weekly close Friday, and -3.32% from past Thursday's 4-year highs few pips shy of the 100 level.

Current retrace is the biggest loss in a 2 single day down move since 2011 Tsunami in Japan, with reports now pointing to “Tokyo/importers likely bargain hunters initially,” said IFR Markets. The pair has so far held above the 50% Fibo retrace of latest leg up from below 93.00 lows pre-BoJ to mentioned sub-100 highs, at 96.30, once Kuroda has stated the Japanese central bank will not take any more monetary easing actions for the moment.

Immediate support to the downside for USD/JPY lies at mentioned Fibo level/March 15 highs 96.33/27, followed by recent session/6-day lows at 95.70, and March 12 lows/61.8% Fibo retrace of same leg up at 95.45/50. To the upside, closest resistance shows at April 05 Asian session highs 97.20, followed by yesterday's Asia-Pacific lows at 97.52, and April 05 highs at 97.83.

Commodities Brief: Silver and Gold lead the way down as the liquidation continues

The selling in commodities, which initially started during the Asia session after release of China GDP, continued throughout much of the European and US Sessions. News of two explosions near the finish line of the Boston Marathon was also released late in the session, which also sent US Equities sharply lower at the end of the day. The S&P 500 suffered its biggest drop of the year, closing down 2.26% at 1552.36.
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Forex: EUR/JPY suffers steep losses as Yen carry-trades continue to unwind

The EUR/JPY finished down 2.21%, closing the US Session at 126.00. At one point, the pair had traded as low as 124.98 before finding support and recovering losses during the last few hours of the session. Risk assets were lower across the board, with severe liquidation continuing in commodities and the S&P 500 suffering its worst loss of the year closing down 2.26% at 1552.60. The negative developments across risk assets appears to have helped lead to some unwinding of the yen carry trades which had been intact recent weeks.
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