Safety Demand Buttresses the Yen

By @ibtimes on

The Japanese yen strengthened as a safe haven after the strongest earthquake in more than a century shook Japan and amid the unrest in the Middle East and North Africa.

Tokyo was hit by an 8.9-magnitude earthquake followed by 10-meter tsunami waves, where at least 26 people have been killed in addition to various damages.

On the other hand, Qaddafi's son, Saif al-Islam, said he will not surrender and his loyalties will intensify their attacks on rebels and warned Western countries from any kind of intervention.

Accordingly, European stocks dropped while the dollar managed to pare some of its earlier losses as it rebounded against a basket of major currencies to 77.23 after falling to a low of 77.05, as depicted by the dollar index, ahead of the release of US retail sales and confidence data.

With regard to the dollar-yen pair, it slipped on the daily and 4-hour charts to touch a low of 82.36 before it rebounded to 82.37, where it is currently trading, while the day's high was seen at 83.29.

The trading range for today is among the key support at 81.65 and the key resistance at 83.70.

Moving to the British pound versus the dollar, it collapsed for the second day to trade at 1.6008, where it found solid support at 1.60 level, while the day's high was recorded at 1.6076 and the low was hit at 1.5975.

Today, PPI data added to inflation concerns as the output gauge rose to 5.3% in the year ending February from the revised 5.0% and yearly input indicator soared to 14.6% compared with the revised 14.1%.

The trading range for today is among the key support at 1.5905 and the key resistance at 1.6345.

Concerning the euro-dollar pair, it advanced on the 1-hour chart to take the pair near the day's opening level at 1.3790 after dropping to a low of 1.3750 and touching a high of 1.3840.

Later in the day, European leaders will meet to discuss European debt crisis after Moody's downgrade to Spain's credit rating yesterday.

The trading range for today is among the key support at 1.3715 and the key resistance at 1.4000.

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