The pair started this morning at $1.2536 after a $1.2510 to $1.2545 range during the US hours last night. Early dealings saw euro-dollar trapped in a $1.2530/35 range before the US dollar’s rise vs the yen put euro-dollar under pressure as well. Euro-dollar slipped to $1.2519 a few minutes after the Japanese stock market open, but was briefly held off there. Another round of dollar gains then drove euro-dollar to $1.2516 before it saw another small rebound to $1.2526. Euro-dollar eventually traded down to a $1.2513 Asian session low as dollar-yen rose further to new 7-year highs just a few minutes before the BOJ policy decision. The pair recovered marginally in the early afternoon to last trade at $1.2519. Looking ahead, sellers are noted from above yesterday’s $1.2545 high, from $1.2550 up through $1.2610 with stops then expected on a further break higher. For now, buyers at $1.2500 are expected to provide support, with a break lower to uncover further demand interest at$1.2480/70.
