The yen continued to weaken against the green currency after the Bank of Japan decided to fight the surging yen through pumping 10 trillion yen of loans in the market. The euro and the pound gained on optimism, after the Fed said yesterday the U.S economy improved.
The euro dollar pair inclined slightly recording a high of 1.5095 and a low of 1.5063, having the union currency trading around 1.5085. The pair is having a resistance at 1.5130 along with a support at 1.5040 and it is anticipated to show further gains according to the four hour stochastic oscillator, so the pair may breach the resistance and target 1.5180. A series of important fundamentals will be released from the euro area such as the gross domestic product preliminary reading, the ECB's rate decision and retail sales, and they tend to move the market on release.
Regarding the pound dollar pair, it inclined recording a high of 1.6684 and a low of 1.6649, having the royal pound trading around 1.6680. The pair is having a resistance at 1.6715 along with a support at 1.6625 and if the pair broke the resistance it may jump to the 1.6770. The British PMI services is on queue today and it may affect the pair on release. However, the pair is trading in an overbought area according to the four hour momentum indicators.
Finally, the dollar continued to gain against the Japanese yen recording a high of 87.91 and a low of 87.57, having the pair trading around 87.85. The resistance could be found at 88.25, while the support could be found at 87.55 and if the resistance was breached, we may see the pair trading near the 88.60 levels. Data concerning the labor market will be released today that may move the market. Yet, the daily stochastic oscillator is supporting the upside.