The World's Leading currency; The Dollar rebounded in today's trading session where its currently trading at a four-month high against the Japanese yen and gaining momentum against major currencies, where speculation that the U.S economy's infamous jobless report will show that the U.S economy is recovering from the worst financial crisis since the Great Depression as job losses eased drastically throughout the month of December.
Today's news from the labor sector showed that the number of Americans filing claims for unemployment benefits came out below expectations nevertheless the ADP report released earlier this week showed that the sector is recovering but in a gradual pace. The nonfarm payroll is expected to turn positive before the end of the first quarter of this year showing a strong rebound in economic conditions in the sector.
Meanwhile the Japanese Finance Minister first day at his position caught investor's attention due to the statements released by him as he said that he would welcome a weaker currency. Therefore the Yen fell against major currencies while the Dollar benefited as it appreciated by more than 0.9% and 0.6% against the Yen and the Euro respectively.
The U.S Dollar Index; which measures the performance of the Green Benjamin against a six major currencies including the Euro, Pound and Yen jumped from the opening levels of 77.505 to currently trade at 77.957 after reaching the highest levels at 78.072 and the lowest at 77.301.
The euro-dollar pair showeda decline on the daily and 4-hour charts, where it's expected to continue to fall breaching the support levels at $1.4305 and continue to reach the upcoming support levels at $1.4250, the pair is trading within the support levels at $1.4284 and the resistance levels at $1.4361 where it is expected to build a solid bullish trend but in order to achieve the trend, it is vital that the 1.4275 level remains intact. The pair's trading range is set among the support levels at $1.4275 and the resistance levels at $1.4385.
The sterling-dollar pair declinedon the daily charts, after rebounding from the resistance levels at $1.6238. So far the pound is trading at $1.5929, setting a high of $1.6058 and a low of $1.5893; where the pair is expected to decline reaching the upcoming support levels at $1.5824. The pair is currently trading at an oversold area which could initiate a volatile move throughout the upcoming period but the overall direction for the pair is to the downside. The pair faces support and resistance levels at $1.5830 and $1.5985 respectively.
Finally talking about the USDJPY pair, the pair continued within the ascending pattern it has been following throughout the past two days whereas the pair is trading within an upside channel pressuring the pair to reach the resistance levels set at $93.67. The pair is nearing an overbought area on the Stochastic and the RSI Oscillators therefore the pair might descend in a correctional move throughout the Asian session before ascending once again throughout tomorrow's trading session. The pair is currently trading at $93.09 where the upcoming support and resistance levels for the pair are set at $92.45 and $93.65 respectively.