The Japanese yen dropped versus majors, as stocks bounced to records ahead of the release of important U.S. data. Investors left refuges on signs of recovery amid tranquility in markets, on the back of the year-end holidays. Later on today, U.S. data concerning housing and confidence are due where expectations are in favor of an increase, which may change the market direction towards the U.S. dollar that had slipped for the fourth day today against a basket of major currencies, as indicated by the dollar index.
The euro-dollar pair inclined on the daily charts after falling from a high of 1.5140 on December 3. However, it is facing downside pressure from the 4-hour and 1-hour charts, where the pair is showing downside tendency. The euro is gaining in the absence of economic data from the euro zone, but it may drop if the U.S. news came in line with expectations. Currently, the pair is traded at 1.4414 recording a high of 1.4436 and a low of 1.4352; whereas the coming support is at 1.4363 and resistance at 1.4436.
The sterling-dollar pair declined on the daily and 4-hour charts, but is unable to breach the strong support at 1.5980, which represents 76.4% Fibonacci retarcement to the upside trend that started on October 13. The pair is currently traded at 1.5983, after setting a high of 1.6066 and a low of 1.5979; while the coming support for the pair is seen at 1.5960 then 1.5940 and the resistance is spotted at 1.6030.
The dollar-yen pair is slightly rising on the daily and 4-hour charts, where the pair is trading around 91.73 after hitting a high of 91.77 and a low of 91.51; while the pair is currently facing the coming support level at 91.30, while the resistance is spotted at 92.10.
