In European session yesterday USDJPY is quoted in a narrow range. At the beginning the greenbacks traded at Y105.80 as short covering and dollar-buying against the single European currency. But the American dollar hit a low at Y105.30 as the European and American stock fell. After recording the low the American dollar recovered to Y105.50 by Cross-Yen buy. The Euro hit a high at $1.5810 as traders sold the Dollar against the Euro. The Euro-rising is supported by climbing oil price in future markets. The Japanese Yen moved up against the Euro to Y166.10 as the Yen extended gains versus the greenbacks, but the Euro rebounded to the level at Y166.60 as the single European currency rose against the Dollar.
The Euro is much in demand before the interest rate decision of the European Central Bank (ECB). Traders speak about purchase of the single European currency by long-term European investors and short-term hedge funds, expecting the rate up in the Euro zone tomorrow. In this moment the Euro against the Dollar moved up to $1.5840. The EURJPY which fell to the level Y157.10 rebounded to the level of Y158.30. In EURUSD offers are at the level of $1.5840/50 with stops at 1.5840. The level at $1.5844 is the high in a rally between 1.5285 and 1.6020 from 8 Jun. The level of $1.5847 is the same as 76.4% Fibonacci Retracement from the historical high at $1.6020 to $1.5285. From the point of fundamental view there is option barrier and stop orders above. Much offers are in the rage between 1.5880/00.
From the point of technical view the Euro tested the level of $1.5840/47, which is the high and Fibonacci level as well, against the American dollar that pointed out the possibility in falling to the support line at $1.5659 and to the 100-day and 21-day moving averages $1.5632 and $1.5596. Daily stochastic tends to weaken and returns from overbought zone. Daily momentum is now giving a little negative signals that shows temporary correction in the currency pair.
RES 4: $1.6020 maximum of 22 Apr.
RES 3: $1.5902 2% envelope
RES 2: $1.5884 upper band of Bollinger bands
RES 1: $1.5840/47 maximum of 9 Jun., 76.4% Fibonacci at $1.6020-$1.5287
Current quotation: $1.5803
SUP 1: $1.5659 support line of 13 Jun.
SUP 2: $1.5600 21-day moving average
SUP 3: $1.5520 100-day moving average
SUP 4: $1.5467/71 minima of 18, 19, 23 Jun.
