Today, the Japanese Yen inclined versus its major counterparts in a correctional movement during the Asian session, after yesterday’s sharp decline following Japan's government intervention in the forex markets for the first time since 2004. This determined the Japanese exporters to seize the opportunity and buy the weaker yen, in order to compensate some of the losses seen since the Japanese currency reached its highest in 15 years against the dollar.
Today, the euro declined against the yen in a correctional movement, but it traded sideway against the dollar in a tight range under the 1.3000 level, recording a high of 1.3011 and a low of 1.2975, and now it trades around 1.2994. The hourly and four hours momentum indicators show the pair is within an overbought area, which might push the pair towards the 1.2920 level again.
The pound fell against the dollar after it managed yesterday to reach the resistance 1.5585 which it failed to breach. Today, the pound recorded a high of 1.5646 and a low of 1.5594. The pair now trades around 1.5620. The daily momentum indicators support the pair’s upside movement, while the four hour momentum indicators show the pair is in an overbought area.
Today, the dollar/yen pair declined, as the Japanese companies bought the currency which reached near a two-week low against the dollar. The pair recorded today a low of 85.21 and a high of 85.62 and now it trades around 85.26. The daily and four hours momentum indicators support the pair’s incline which might be pushed towards the resistance level 85.00, which if breached will target the next level found at 85.70.