The Japanese yen slipped against majors as European and U.S. shares gained after Exxon Mobil released better-than-estimated profits and as manufacturing reports in Europe and U.S. showed improvement. On the other hand, the U.S. dollar halted its 4-day rally and seven-month high against a basket of major currencies today as seen by the dollar index, despite the optimistic U.S. news. The dollar index is currently traded at 79.35 from the day's opening at 79.45.
With regard to the euro-dollar pair, it rebounded on the daily charts, but still close to the lowest level in seven months against the dollar, as PMI manufacturing in the euro zone beat forecasts, thereby providing hopes the euro region may show strong recovery this year. The pair stopped today its bearish pattern that started in December; however, the pair is still oversold as indicated by the Stochastic Oscillator momentum indicator on the daily charts. Meanwhile, the pair is traded at 1.3902 after reaching a high of 1.3934 and a low of 1.3849, where the coming support is seen at 1.3870 and next resistance is at 1.3925.
As for the sterling-dollar pair, it is showing a decline on the daily and 4-hour charts, after opening today on a gap, despite the stellar PMI manufacturing data which revealed that the sector's expanded to the highest level since 1994. It seems that the pair will continue its bearish downside trend that started since mid November, especially if it breeched strong support at 1.5830. Now, the sterling is traded at 1.5900, recording a high of 1.5978 and a low of 1.5848, while it is moving between support at 1.5850 and resistance at 1.5950.
Relative to the dollar-yen pair, it edged up on the daily and 4-hour charts. The pair is currently traded at 90.71 after the breakout of resistance at 90.34 which represents 38.2% Fibonacci retracement to the upside trend that started at the beginning of December. Today, the pair reached a high of 90.88 and a low of 89.86, while it is expected to face the coming support level at 89.90, while the resistance is spotted at 91.00.