Forex: Fresh Japanese Earthquake brings risk aversion in the market

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A fresh strong aftershock hit Japan on Monday, while the evacuation zone around its crippled nuclear plant was expanded because of high levels of accumulated radiation The yen was on a fresh 11-month low versus the euro today while at the same time a 2-1/2 year trough against the Australian dollar was developed, following another earthquake strike in Japan leading investors to cut back on their hawkish expectations towards the Japanese currency.

Traders stated that there are expectations that were triggered by technical indicators, that show the volatility against the Euro and the Australian Dollar could cease in the short time period following the latest sequences of destructive earthquakes that have been used by some traders to make immediate short time profits. With investors being more risk-averse towards the Euro, the euro dipped also against the dollar, staying below under the 1.4489 15-month high achieved on Friday.