The Japanese yen rose against the basket of currencies on Thursday, after the global stock markets decrease reduced the risk demand. Wall Street major indexes extended their losses, after President Barack Obama called for limiting the size and trading activities of financial institutions as a way to reduce risk taking and prevent another financial crisis.
As a result the yen advanced against the U.S. dollar with 1.2% to ¥90.10, while versus the sterling the yen gained 1.7% to ¥146.09. The euro fell versus the Japanese currency as well, loosing 1.2% to ¥127.04.
On the other hand the European currency put an end to its seven day decrease versus the sterling, as yesterday it gained 0.6% to £0.8715. Against the dollar, the euro fell to new bottom at $1.4027, but after that it managed to recover to $1.4081.
TECHNICAL OVERVIEW
EUR/USD
Тhe short term picture remains negative as the key support level at 1.4180, which is 50.0% FIbo retracement of the 1.6035-1.2329 drop, was broken. Now next supports are expected at the psychological 1.4000, followed by 1.3850. On the upside resistance is seen 1.4570, followed by 1.4620, which is 61.8% Fibo retracement of the mentioned drop.
EUR/USD (chart, table)
USD/JPY
The short term picture remains neutral as the pair trades around 91.00. On the upside resistance is seen at 92.20, followed by 93.50, which coincides with the 200-days SMA, and 94.60, which is 38.2% Fibo retracement of the 110.64-84.81 drop. On the downside, support is seen at 91.00, followed by 90.15 and 88.30.
