The Japanese currency advanced against majors, especially the dollar, on worries the United States may fall in a double-dip recession after a series of downbeat data and announcements by the Fed.
This week, retail sales and manufacturing outputdropped ahead of the release of Michigan confidence today which is expected to slide to 74.0 from 76.0.
Also, the Fed lowered growth forecasts for the current year to range between 3.0% and 3.5% instead of 3.2% and 3.7% and expressed its worries about unemployment and inflation, which confirmed that the current low interest rate will remain for longer while.
Concerning the dollar-yen pair, it fell on the daily charts for the third day on uncertainty in the U.S. which drove the yen towards its highest level this year versus the greenback. However, the pair is getting strong support at 86.90 where the pair has reached a low of 86.95. For now, the pair is trading at 87.07 recording a high of 87.05, whereas support is seen at 86.40 while resistance is at 88.00.
Regarding the euro-dollar pair, it is continuing its rise on the daily charts despite the downbeat report released today showing that European trade surplus turned into a deficit in May. For the moment, the pair is trading at 1.2971, recording a high of 1.2981 and a low of 1.2887, whileit is predicted to move between support and resistance at 1.2850 and 1.2985 respectively. The pair is confirming predictions that the breakout of 1.2680, which represents a neckline to a bullish technical pattern, will take the pair to 1.30 levels.
As for the sterling-dollar pair, it did a downside correction on the daily charts after the previous three days rally which sent the sterling to the highest level in more than two months versus the green currency. Currently, the pair is trading at 1.5417, recording a high of 1. 5460 and a low of 1.5389, to halt the upside direction that started since mid May. For the rest of the day, the pair is expected to move between support at 1.5350 and resistance at 1.5475.