Yen continues to incline as a Shelter

By IBTimes Staff Reporter | August 09 2010 1:37 AM

Japanese currency advanced against higher-yielding currencies as the world's largest economy is losing steam, after a disappointing U.S. July payrolls report boosted talk that the Federal Reserve could consider further easing monetary policy as early as this week. On the other side, Gold Sachs Group cut its growth outlook for the U.S., where the Federal Reserve will have to buy more bonds to support the flagging economy, helping to also lift commodity prices and equities.

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Today the euro/dollar pair rose, and the pair recorded a high of 1.3290 and al low of 1.3273 and, having the pair trading around 1.3271. The pair is trading in an overbought area according to momentum indicators on the four hour and daily charts. In case the pair breaks the 1.3130 level, then it will be on its way towards the 1.3055 level.

Turing to the sterling, which rose against the dollar during the Asian session, as the sterling recorded a high of 1.5973 and a lowest of 1.5966, trading around 1.5970. On the other hand, the four hour and daily momentum indicators indicate that the pair is in an overbought area signaling a possible correctional movement.

The dollar/yen pair advanced to reach the 85.52 level, after recording a low of 85.33. The pair is trading in an oversold area according to the momentum indicators; the resistance level resides at 86.60 and the support at 84.80.