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Currencies Update: The yen declines on Japan’s growth optimism
Written by article default Monday, 15 November 2010 09:52
The Japanese yen fell versus its major counterparts at the beginning of this week's trading, as Japan's economy grew in the third quarter more than expected, along with data showing the Asian economic recovery is gaining, increasing demand for higher yielding currencies as confidence improved, curbing demand for Japan’s currency as a safer asset.The euro rose slightly against the dollar during today’s Asian session, trading above the level 1.3600, recording a high of 1.3749 and a low of 1.3662. On the other hand, the pair faces a support at 1.3600, as the pair declined. The daily and four hours momentum indicators show the pair in an oversold area, which may stop the downside movement.
The pound dropped against the dollar, recording a low of 1.6099 and a high of 1.6152, and now it trades around 1.6110 where the pair faces a resistance at 1.6170. The daily momentum indicators show the pair in an overbought area, while the four hours momentum indicators show an open area to both high and low.
The yen rose against the dollar during the Asian session, recording a high of 82.75 and a low of 82.38. Now the pair trades around 82.65, facing a resistance at 82.85. The daily and four hours momentum indicators show the pair in an oversold area, yet the chances for an upside movement remain valid.