Euro advances after Japanese pledge to buy European debt

The European common currency gained against the yen and other majors
except the dollar after the Japanese Finance Minister vowed to buy
European bonds to support euro area economies.
Today, Japanese Finance Minister Yoshihiko Noda said that Japan will
trail China to support the euro area debt-stripped nations through
buying bonds issued by Europe's financial aid funds, where Japan may
buy up to 20% of the issued bonds.

Euro zone is planning to sell AAA-rated bonds during this month to
gather 16.5 billion euros to finance the Irish bailout. Japan will
probably spend more than 1 billion euros to get the aforesaid stake.

Yet, the news could not lower pressure on the euro with speculations
Portugal will be the third euro zone economy to get an EU-IMF bailout.
Yesterday, Portuguese bond yields and cost against insurance rose to
record high which added to concerns that France and Germany would put
pressure on Portugal to accept a rescue fund to lower tensions in
markets.

On the other hand, the dollar index, which tracks the green currency's
movements versus a basket of major currency, inched up to 80.92 from
the day's opening at 80.86.

Concerning the euro-yen pair, it rebounded on the daily charts after
the announcement where the pair has entered an oversold area as
depicted by the Stochastic Oscillator momentum indicator.
The pair is currently trading at 107.55 after touching a high of
107.85 and a low of 107.03, while the trading range for today is among
key support at 104.40 and key resistance now at 110.50.
Moving to the royal pair, it is consolidating on the daily basis as it
remains to hover around 1.5580 levels.

Meanwhile, the pair is trading at 1.5570 after recording a high of
1.5587 and a low of 1.5510, whereas the trading range for today is
among the key support at 1.5315 and the key resistance at 1.5640.
With regard to the dollar-yen pair, it rebounded on the daily charts
to 83.04 to pare some of the losses incurred over the previous two
sessions.

So far, the pair has recorded a high of 83.16 and a low of 82.66,
whereas the trading range for today is among the key support at 81.05
and the key resistance at 84.25.
Source: Fxstreet.com