Asian Market Update:

The Yen was steady in Asian trading holding onto its gains against major currencies as investors trimmed short positions on caution that a fall in US stocks could filter into Asian equity markets and prompt more risk-cutting.

In New York the Dow Jones industrial average fell over 1% yesterday, falling along with other major stock indexes on disappointing retail sales and a widening trade deficit that prompted worries about the economy.

Tokyo’s benchmark Nikkei share fell 0.8% in early Friday trade.

Traders said falls in the Euro and Sterling against the Dollar after key central bank meetings this week also prompted investors to sell those currencies against the Yen.

The head of a forex desk at a Japanese bank said investors will watch how Asian stocks perform on Friday to decide whether to cut positions in carry trade, in which low-yielding currencies like the Yen are used to fund investment in high-yielding currencies and assets.

The Euro is trading at 161.60 Yen after falling to 161.28 Yen earlier. The single currency is trading at $1.3480 after falling to a one-month low around $1.3465.

The Dollar is trading around 119.90 Yen after hitting 119.71 Yen earlier in the session. It marked a 2-1/2 month high of 120.54 Yen in the previous session.

US Treasury debt prices rose on Thursday after data showed sluggish sales by retailers and a trade deficit hinting the economy grew at a slower than estimated pace in the first quarter.

The stock sell-off also contributed to Treasuries’ rise, although gains were capped by a surprisingly weak 30-year bond auction.

The benchmark 10-year note traded 7/32 higher in price for a yield of 4.64% compared with 4.67% late on Wednesday.

Brent crude held above $65 a barrel on Friday as renewed supply distribution from Africa compounded worries about inadequate gasoline stock levels in the US, just a week ahead of peak summer driving season.

London Brent crude for the June contract was up 1 cent at $65.80 a barrel. It rose 59 cents on Thursday after a fire shut down a Congolese oilfield and more violence in Nigeria raised supply risks there.

US light crude fell 6 cents to $61.75.

Technicals:

EURUSD

Downside pressure remains highlighted with next support at 1.3464 and then 1.3428. Resistance at 1.3514 and 1.3545.

GBPUSD

Bearish with next support level at 1.9795 and then 1.9725. Resistance at 1.9840 and 1.9875.

USDJPY

Prices are moving lower with 119.64 in sight. A break there will lead to 119.55. Resistance at 120.10.

EURJPY

Bearish with next support at 161.24 and then 161.00. Resistance at 161.95.

AUDUSD

Bearish with next support at 0.8260 and then 0.8239. Resistance at 0.8300.