Day ahead in the FX market, Monday December 17th

  • Yen weakens further in early interbank trade after Japanese election result:
  • Speculative Yen shorts at extreme levels so profit-taking after the event still a possibility:
  • USD/JPY breaks above previous highs at 84.15 now targets 85.10 200-week MA:
  • EUR/USD opening at technical resistance level 1.3170:
  • Chinese economic conference ended yesterday evening so expect for risk-sentiment affecting headlines:
  • AUD to be dominated by AUD/JPY flows and Chinese economic headlines:
  1. Hi Sean,
    Don’t like to go against a such strong tide, but looking for the weekend gap to be at least partially filled during the trading day, so I shorted USD/JPY with a small position size. I still favor this pair as it’s less volatile than E/J, where they will target further buy stops before filling the gap.

  2. Agree Milan, I’ve sold very small EUR/JPY adding to previous small short position. Certainly a very strong trend and when it turns it will be v nasty but timing is everything as we know

Leave a Reply

Your email address will not be published. Required fields are marked *