USD/JPY: Hefty profit taking to start the year
Prime brokers are reporting some heavy profit taking in USD/JPY overnight which had a knock-on effect on other speculative positions such as the short EUR trade.
- Technical resistance at 120.70 in USD/JPY continued to prove very solid and this encouraged IMM accounts in particular to start booking profits. I’ve got no view on USD/JPY at the moment.
- Modest short-reduction was also reported in EUR/GBP although movement there was in a tight 30 pip range.
Macro players continue to reduce long-term Gold shorts although the general consensus amongst the bigger banks seems to be that 1170/1230 will contain prices for the next week or so.