The dollar fell against major currencies as crude oil prices rose above $122 a barrel Tuesday. Stronger-thanexpected eurozone producer price inflation supported the euro, making any easing by the European Central Bank more distant. The dollar block currencies advanced on rising commodity prices. The low-yielding yen and Swiss franc rose on increased risk aversion but pared most of their gains as US stocks reversed early losses.
The USD/JPY fell the most in more than three weeks after Fannie Mae reported a larger-than-expected $2.19 billion loss. However, the pair pared losses after US stocks gained in late trading. The pair is overbought, close to crucial resistance, and strongly correlated with the US equity market. The stock market looks likely to continue its rally, making the USD/JPY likely to penetrate the resistance from its long-term downtrend. There are major resistances in the 105.50 and 107.50 areas
The USD/JPY fell the most in more than three weeks after Fannie Mae reported a larger-than-expected $2.19 billion loss. However, the pair pared losses after US stocks gained in late trading. The pair is overbought, close to crucial resistance, and strongly correlated with the US equity market. The stock market looks likely to continue its rally, making the USD/JPY likely to penetrate the resistance from its long-term downtrend. There are major resistances in the 105.50 and 107.50 areas