The Japanese currency advanced against the higher-yielding currencies as the world's largest economy is losing steam, after a disappointing payrolls report from the US which raised talks about the Federal Reserve considering further easing in the monetary policy as early as this week. On the other hand, Goldman Sash Group cut its growth outlook for the U.S., where the Federal Reserve will have to buy more bonds to support the deteriorating economy, which helped to lift also commodity prices and equities.
Today the euro/dollar pair rose, and the pair recorded a high of 1.3290 and al low of 1.3273, trading now around 1.3271. The pair is trading in an overbought area according to the four hours and daily momentum indicators. In case the pair breaks the 1.3130 level, then it will be on its way towards the 1.3055 level.
Turing to the sterling, which rose against the dollar during the Asian session, the British pound recorded a high of 1.5973 and a low of 1.5966, trading around 1.5970. On the other hand, the four hour and daily momentum indicators indicate that the pair is in an overbought area signaling a possible correctional movement.
The dollar/yen pair advanced to reach the 85.52 level, after recording a low of 85.33. The pair is trading in an oversold area according to the momentum indicators; the resistance level resides at 86.60 and the support at 84.80.
