The Japanese yen advanced against all majors today after the Democratic Party won the national elections yesterday which boosted demand on the yen. On the other hand, the yen along with the dollar gained as refuges on fears in markets as Asian stocks fell, with Nikkei Index dropping to the lowest in 11 month, where investors are confused over the aftermath of the Democratic Party's victory. Today, economic data from major economies are not very heavy; therefore, movements throughout the day are expected to be more technical.
The euro versus the dollar, is trading with a downside bias as seen over daily and 4-hour charts. The euro zone released today its CPI Estimate for August showing improvement, giving more hopes that deflation risks are easing. However, the euro was not impacted by the news. Meanwhile, the euro is trading at 1.4291 recording a high of 1.4317 and low of 1.4254, where the pair is supported by 1.4275 and faces the coming resistance at 1.4300.
As for the sterling-dollar pair, it continues its downside trend over the daily charts which started since setting the high of 1.7041 on August 5. The pair is also showing a bearish bias over 4-hour basis, heading to an oversold area according to Stochastic. There is no economic data from the U.K. today as they celebrate their market holiday, and therefore the pair is following the general trend in the market. So far, the pound is trading around 1.6197 setting a high of 1.6300 and a low of 1.6181; while the coming support for the pair is seen at 1.6170 and the resistance is spotted at 1.6225.
As for the dollar against the Japanese yen, it shows downside tendency over daily charts, reflecting the fears in markets. The yen climbed to its highest level in seven weeks versus the green currency earlier today. However, over 4 and 1-hour charts the pair is inclining. Now, the pair is trading around 93.01 after hitting a high of 93.56 and a low of 92.52; the pair is currently facing the coming support level at 92.90, while the resistance is spotted at 93.17.