FXstreet.com (Barcelona) - Asian markets are mixed on Wednesday following Wall Street's weakness and a historic decline on Japanese exports, which have wiped out recent optimism based in the idea that the end of the current crisis was on sight. The Dollar strengthened mildly against Euro and Pound and weakened against Yen.
Japanese Nikkei Index edged down 0.1% as investors reacted with extreme caution to the sharp slowdown on overseas demand for Japanese products; exports from Japan have halved in February compared to the same month on the previous year.
Hong Kong's Hang Seng Index fell 0.5% while South Korean Kospi Index rose 0.5%. Asian markets have also felt the decline in U.S. markets after investors analyzed the details of U.S. Treasury's plan to flush toxic assets by troubled banks.
Yen strengthens; Euro and Pound in range
USD JPY has lost some 100 pips during Asian session. After rejection to break 98.40 resistance level in early Asian session has brought the pair down, at the moment, the pair is testing 97.35 support level (Mar 23 high). The pair looks slightly bearish, and trades between Exponential moving averages in the hourly chart.
GBP/USD ahs declined from 1.4775 maximum level on yesterday's U.S. session to test 1.4650 support level during Asian session times,. 1.4650 remains in place so far, the pair looks slightly bearish and volatility has decreased during the Asian session.
EUR/USD has been consolidating after decline from 1.3675 (Mar 23 high); the pair broke support level at 1.3485/13500 during yesterday's U.S. session, and, ever since, the EURUSD has moved in a flat channel between between 1.3440 and 1.3495.