Having severely breached its 50 day moving average and having broken below its November 3rd low at 1.4625, threats are now seen for lower prices to shape up towards another strong support residing at the 1.4481 level. On the upside, immediate resistance stands at the 1.4799 level, its November 20th high. Further out, resistance is seen at its Dec 07'09 high at 1.4903.
Fundamental Forecast for Euro: Bearish
The Bank of Japan's quarterly tankan survey showed better-than-expected sentiment. The large manufacturers diffusion index, which measures sentiment among those companies' top executives, came in at -24, better than -27; the consensus forecast of economists surveyed by Nikkei and Dow Jones Newswire. The US Dollar immediately gave ground to the Yen, as it slid lower throughout the night, only to pare its losses in the early hours of European trading. Forex traders will be watching for any news out of the BoJ to find judge whether the dollar weakness will continue in the short run.
Key levels for the Yen today:
Support 1: 88.5
Support 2: 88.25
Resistance 1: 89.30
Resistance 2: 89.83
Not much economic news to look out for today so Forex traders will be focusing on keys technical levels and the dollar's potential reversal. Keep an eye out for any coverage of Dubai, Greece, and Spain's recent struggles with their debt ratings.
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