The dollar slid further to a fresh 2-1/2-year low against the yen on Monday

The dollar slid further to a fresh 2-1/2-year low against the yen on Monday, in line with falls in U.S. equities, as renewed credit worries affirmed expectations that more U.S. rate cuts are imminent. Investors are on edge about fallout from the credit crunch as the approaching year-end may force them to dump assets or scramble for cash to get books in order in strained markets. Worries about the U.S. economy and expectations for additional Federal Reserve interest rate cuts have caused the dollar's broad tumble.
Datawise, the German IFO Business Climate report is out today at 09:00 AM GMT. Later on, watch out for US Consumer Confidence figures (03:00 PM GMT), followed by the Mid-West Manufacturing Activity report (05:00 PM GMT).

Euro | Japanese Yen | British Pound | Swiss Franc

  
 
Euro
 
The EUR/USD opened at $1.4870 in Asia and traded in a tight $1.4851 - $1.4884 range. Later in the session, the Nikkei rebounded from being down 2% to up1%, taking the EUR/USD to a $1.4884 high. Initial support comes in at $1.4800/10, and resistance at yesterday’s $1.4885 high.

Support: 1.4820, 1.4800, 1.4770 
Resistance: 1.4880, 1.4900, 1.5000 
 
Euro | Japanese Yen | British Pound | Swiss Franc 

 
Japanese Yen
 
USD/JPY opened in Asia on the wrong foot, with the pair trading down to a low of ¥107.29 , weighed down by the afternoon plunge on Wall Street which saw the DJIA closing down 1.83% on the day. However, the Nikkei shot higher later into the session, and USD/JPY reversed all of its early losses and surged to ¥108.82. The pair currently trades at ¥108.10.

Support: 107.50, 107.30, 107.00 
Resistance: 108.80, 109.00, 109.50 
 
Euro | Japanese Yen | British Pound | Swiss Franc

  
 
British Pound

Sterling rallied sharply in the Asian session, on news that the Abu Dhabi Investment Authority was to buy $7.5 bln worth of stock in Citibank. GBP/JPY jumped from ¥223.25 to a high of ¥225.60 in less than 30 minutes. Cable was previously trading around $2.0710 having seen an earlier session low at $2.0685, and it jumped to a high of $2.0755 short of last week’s high at $2.0765. The pair currently trades at $2.0682 after having slid back to retrace its earlier gains. 

Support: 2.0640, 2.0610, 2.0550 
Resistance: 2.0720, 2.0750, 2.0800 

Euro | Japanese Yen | British Pound | Swiss Franc 

 
Swiss Franc 
 
 

Support: 1.0960, 1.0900, 1.0850 
Resistance: 1.1070, 1.1110, 1.1200