Dollar Yen Hits Two-Month Low; Euro Gains

Dollar Yen Hits Two-Month Low; Euro Gains

US dollar continued to drop against the Japanese yen on Tuesday. On a daily basis, USDJPY broke the lower band of the Ichimoku cloud, which as I said yesterday, may open doors to further drops in the currency pair.

The dollar is also weakening against the euro, before the release of a report that usually moves the greenback: The Manufacturing PMI. The report will be released at 10 AM EST. The economists are expecting very small or no changes in the data comparing to the previous month.

US Dollar vs Japanese Yen Daily Chart May 1, 2012

Euro trading may be thinner today, as May Day is considered a holiday in the Euro zone.

By Kiana Danial at Forex Diva