The Japanese yen advanced against majors amid woes dominating markets after the slowdown in Japanese growth had added to concerns that global recovery is losing momentum.
Today, Japan's GDP for the year ending June came in at 0.4%, the slowest expansion pace in nearly three quarters, while analysts expected 2.3% expansion.
The lackluster data following the downbeat reports released recently from major economies raised concerns that recovery is waning, thereby enhancing demand on the yen as safe haven, while most Asian shares dropped after the release of the Japanese report.
However, the dollar did not follow the yen's suit since it dropped as depicted by the dollar index, which tracks the dollar movements versus a basket of major currencies, to 82.54 from the day's opening at 82.83 as a downside correction to last week's gains.
Concerning the euro-dollar pair, it rose for the first time today after five straight sessions of drop as it did an upside correction, where the Stochastic Oscillator is referring that the pair is trading in an oversold area.
Meanwhile, the euro-dollar pair is trading at 1.2816 after breaching resistance at 1.2800 to record a high of 1.2834, while it reached a low of 1.2731 earlier today. For the rest of the day, the pair is expected to move between support and resistance at 1.2730 and 1.2880 respectively.
Turning to the sterling-dollar pair, it is currently trading near the day's opening at 1.5601 in the absence of economic data from the United Kingdom. The pair is also oversold as shown by momentum indicators which refer to the possibility of moving to the upside.
The royal pair recorded a high of 1.5640 and a low of 1.5532, while it is expected to move between support at 1.5560 and resistance at 1.5650 for the rest of the day.
With regard to the dollar-yen pair, it is showing decline on the daily and 4-hour charts after the pessimistic Japanese growth report. So far, the pair is trading at 85.47, reporting a high of 86.22 and a low of 85.39, whereas support is seen at 84.70 while resistance is at 86.20.