The Yen and Dollar Strengthens

By IBTimes Staff Reporter | April 16 2010 12:26 PM

The Japanese yen and U.S. dollar advanced against majors on concerns China will cool growth while concerns that Greece will use the rescue package offered by the EU and IMF enhanced demand on refuges. The dollar index, which tracks the dollar movements versus a basket of major currencies, gained to 80.60 from the day's opening at 80.46.

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With regard to the euro-dollar pair, it is showing decline on the daily charts but facing upward pressure from the 4-hour and 1-hour charts. The euro pared some of its losses after getting support at 1.3848. EU Finance Ministers are discussing the Greek debt problem in a two-day meeting in Spain starting today. Speculations that Greece will not be able to tackle its deficit are weighing on the euro. Currently, the pair is trading at 1.3525 after reaching a high of 1.3584 and a low of 1.3489, whereas support is seen at 1.3405 while resistance is at 1.3590.

As for the sterling-dollar pair, it is also showing decline on the daily charts but got support from the 4-hour and 1-hour charts, where the pair rebounded to 1.5445 after falling to a low of 1.5364 in a day that lacked fundamentals from the U.K. Conservatives lead over Labour party increased is still weak, thereby worries of having minority government are still persisting. Today, the pair reached a high of 1.5504 and a while it is expected to move between support at 1.5380 and resistance at 1.5500.

Relative to the dollar-yen pair, it is moving to the upside on the daily and 4-hour charts as worries enhanced demand on the yen. The pair is continuing its fall after breaching cluster resistance at 93.76, while meanwhile it is trading at 92.45 after reaching a high of 93.14 and a low of 92.22, whereas support is seen at 92.15 while resistance is at 93.20.