The Japanese currency inclined slightly on Tuesday as the central bank of Australia kept the cost of borrowing unchanged, while analysts were expecting a rise. On the other hand, the U.S. dollar weakened against majors for the second day in the absence of important fundamentals today ahead of the release of U.S. job data on Friday. The dollar index, a gauge of the dollar movements against six major currencies, slipped to 79.08 from the day's opening at 79.17.
With regard to the euro-dollar pair, it inclined slightly on the daily and 4-hour charts, reversing from the lowest level in seven months against the dollar reached this week. The euro inched up after German retail sales showed improvement in December. The pair stopped today its bearish pattern that started in December and is on its way to rebound from an oversold area as indicated by the Stochastic Oscillator momentum indicator on the daily charts. Meanwhile, the pair is traded at 1.3946 after reaching a high of 1.3965 and a low of 1.3884, where the coming support is seen at 1.3925 and next resistance is at 1.4000.
As for the sterling-dollar pair, it is consolidating on the daily and 4-hour charts; however, the pair was not impacted by PMI construction data which showed expansion in January. The pair stopped its bearish trend that started since mid November, but still showing a weak rebound. Now, the sterling is traded at 1.5956, recording a high of 1.5984 and a low of 1.5900, while it is moving between support at 1.5920 and resistance at 1.6010.
Relative to the dollar-yen pair, it edged down on the daily and 4-hour charts. The pair is currently traded at 90.30, close to strong support at 90.34 which represents 38.2% Fibonacci retracement to the upside trend that started at the beginning of December. Today, the pair reached a high of 90.91 and a low of 90.24, while it is expected to face the coming support level at 89.90, while the resistance is spotted at 90.75.
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