The Japanese yen and U.S. dollar advanced against majors on fears in markets regarding debt crisis in the euro area on speculations Portugal will adopt new austerity measures to lower its deficit following Spain and Greece's retrenching policies. The dollar index, which traces the dollar movements versus a basket of major currencies, inclined for the fourth session to 85.15 from the day's opening at 84.91.
With regard to the euro-dollar pair, it dropped for the fourth day where the euro is currently traded at its lowest level in 14 months on debt concerns in the euro region despite the $1 trillion bailout unveiled by the EU to stop the debt contagion from spreading across European nations. The pair is currently trading at 1.2560 but it may gain support at 1.2440 level, while it opened at 1.2613 and reached a high of 1.2683 and a low of 1.2540. For the rest of the day, the pair is predicted to move between support and resistance at 1.2510 and 1.2665 respectively.
As for the sterling-dollar pair, it is moving to the downside on the daily charts, but it stopped its decline after breaching support at 1.4850. The royal pound slipped today after the trade deficit widened in March as reported by the data released today. The pair may fall further after breaching 1.5000 psychological level where it is currently trading at 1.4707 while earlier today the pair recorded a high of 1.4916 and a low of 1.4685. The pair it is expected to move between support at 1.4650 and resistance at 1.4810.
Relative to the dollar-yen pair, it is showing decline on the daily charts as the yen pared some of yesterday's gains on fears in markets which enhanced demand on the yen as a refuge. The pair is currently trading at 92.79 after hitting a high of 93.63 and a low of 92.59, whereas support is seen at 92.30 while resistance is at 93.30.