The Japanese currency climbed to an eight month high against the dollar, whereas the dollar hovered near a three month through against the euro as the world's largest economy is losing steam. The expectations are for the Federal Reserve to keep rates at their record low, which pushed investors to invest in safer assets such as the yen unwinding their risky assets as well as head to assets with more lucrative profitability outlook.
The euro remains near the three-month high of $1.3262 reached on Tuesday, where the euro/dollar pair is recording a low of 1.3215 and a high of 1.3239, having the pair trading around 1.3225. Also, the pair is trading in an overbought area according to momentum indicators on the four hour and daily charts. Finally the pair may reach its highest target at 1.3350, in case the pair breaks 1.3130 levels, and then it will be on the way towards 1.3060.
Yesterday, the British pound advanced against the dollar during the Asian session, and it inclined to 1.5900 today. Today the pound/dollar pair recorded a high of 1.5966 and a low of 1.5926, trading around 1.5928. On the other side, momentum indicators over four-hour and daily basis indicate that the pair in an overbought area signaling possible correctional attempts.
The Japanese currency advanced versus all 16 majors' counterparts, where the dollar/yen pair fell to reach 85.38, after recording to a high of 85.89. Also, the pair is trading in an oversold area according to momentum indicators over four-hour and daily charts, trading among its resistance at 86.30 and a support at 84.80.