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The Yen finds additional support from the improving current account

Published 09/08/2010, 01:32 AM
Updated 09/08/2010, 02:28 AM

Although trading volume was narrow during today’s Asian session, the Japanese Yen continued to strengthen, exceeding its highest in 15 years against the dollar, following the improvement seen in the Japanese machine orders, current account surplus and trade balance surplus, which indicates that Japanese companies managed to adapt with the stronger yen.

Today, the euro traded near yesterday’s closing, above the support 1.2650, recording the highest of 1.2699 and the lowest of 1.2676. The pair now is trading around 1.2898. The daily momentum indicators support a decline, but the four hour momentum indicators show the pair is trading in an oversold area, which might push the pair to upside in a correctional movement.

The pound inclined against the dollar during the Asian session, trading above the support 1.5320 but remain near it, recording today a high of 1.5377 and a low of 1.5349, and now the pair trades around 1.5367. The daily and four hour momentum indicators show the pair is near an oversold area, which prevented the pair from breaking the support level mentioned above.

The dollar against the yen pair moved today to the downside trying to reach the support level found at 83.60, recording the lowest of 83.33 and the highest of 83.86, and now it trades around 83.36. The daily and four hours momentum indicators show the pair is within an overbought area, however the downside movement remains intact and it might continue until the support level mentioned above.

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