The Dollar may start to rise against the Japanese Yen, technical's show

The dollar’s decline against the yen may stall before it reaches so-called support at 91.30, Standard Chartered Plc said, citing trading patterns. “The dollar-yen breakdown is expected to be short-lived ahead of 91.30 support,” Callum Henderson, global head of currency strategy at Standard Chartered in Singapore, wrote in a research note yesterday. “Clients should close short dollar-yen positions and look to buy into this dip ahead of 91.30.” A short position is a bet an asset will fall. The Jan. 19 high is a previous level of resistance, which has become support since it has been breached. Support is where buy orders may be clustered. Resistance is where there may be sell orders. The USD/JPY is currently trading at 93.05 as of 8:59am, London Time.

The pound inched up on Tuesday after a strong reading of retail sales and house prices suggested the economy may be bottoming out. The pound recovered after risk aversion on Monday pushed it near a one-month low hit last week versus the dollar, but gains were capped due to lingering concerns about the global economy. "The overnight releases of the firm BRC sales monitor for June and the jump in the RICS house price index ... provide GBP with some support," analysts at Commerzbank wrote in a research note. But they said the CPI figures would be a bigger factor for sterling, as an absence of inflationary risks may add to the view that the Bank will continue measures to help boost the economy. The GBP/USD is currently trading at $1.6290 as of 9:12am, London Time.

Canada’s dollar strengthened from near the weakest since May after quarterly central bank surveys showed the nation’s businesses were the most optimistic in almost a decade on sales prospects, and stocks climbed. Canada’s dollar was the best performer today among the 16 most-active currencies tracked by Bloomberg, after six straight weekly losses it capped on July 10. The decline, its longest losing streak since December 2007, came as concern a global economic recovery will be delayed crimped stocks and commodities. Oil, Canada’s biggest export, fell the most last week since January. The USD/CAD is currently trading at $1.6311 as of 9:27am, London Time.

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