Not only is their country reeling from the impact of a massive earthquake and the resulting tsunami, many Japanese retail traders were stopped out of long-held positions in USD/JPY and JPY crosses. Many an account was battered shortly after the US close last evening as USD/JPY hit an air-pocket below the 79.50 area. 76.25 was the terminus according to EBS data.
Expect that sector of the market to withdraw for the near-future, knocking one supportive leg out from under USD/JPY and JPY crosses for a few weeks or months to come…
