The yen retraces yesterday's gains  

on January 06 2010 11:17 AM

The Japanese currency fell against majors after yesterday's advance where it rose to the highest in 4 weeks against the dollar as the upbeat services data in the U.S. and Europe damped demand on the yen as a refuge and as the Japanese finance minister resigned.

On the other hand, the U.S. dollar gained slightly against a basket of major currencies, where the dollar index surged to 77.70 from the day's opening at 77.63 ahead of the FOMC meeting later on today. In general, movements are rapid and showing fluctuations as a consequence of the low volume due to vacations. However, the FOMC meeting may give a new direction to the dollar in the coming period.

With regard to the euro-dollar pair, it is showing a slight incline on the daily charts after touching a high of 1.4392 and a low of 1.4281, where it is currently traded at 1.4373. The euro fell earlier after the announcement of the EU that it will not help Greece in its debt woes, but it rose again after the optimistic services data in the euro zone. Meanwhile, the pair is facing the coming support at 1.4270 while resistance is seen at 1.4380.

As for the sterling-dollar pair, it is surging slightly on the daily and 4-hour charts, after gaining support at 1.5980 where the pair has been fluctuating between it and 1.6150 levels in the past two weeks. Tomorrow, the BoE members will meet to set the interest rate, but expectations are in favor leaving the interest rate and APF quantity unchanged. The pair is currently traded at 1.6025 after setting a high of 1.6162 and a low of 1.5935; while the coming support for the pair is seen at 1.5925 and the resistance is spotted at 1.6055.

Relative to the dollar-yen pair, it is inclining on the daily charts but facing downside pressure from the 4-hour and 1-hour charts. The pair is currently trading around 92.52 after hitting a high of 92.73 and a low of 91.50; while the pair is currently facing the coming support level at 91.80, while the resistance is spotted at 92.40.

More News from IBT MEDIA