With very little data on the calendar today, and no surprises from other fundamental quarters, most currencies followed the immediate trends in place on their daily charts.
USDJPY sold-off late in the Tokyo session and through the London morning sessions, in line with the direction set on its daily and weekly charts. This pair posted a new 5-week low right around 107.40, finding support just above the November low at approximately 107.25, before retracing the overnight sell-off by just short of .618 during the U.S. session. There is very little on the Japanese calendar this week, which could point toward a slow grind higher for the Yen, in sympathy with both its short, intermediate, and long-term trends on the daily charts.
EURJPY ended the day little changed after again finding support around 160.00. While the short-term trend for this pair is lower, the intermediate-term trend is sideways, and approaching this pair with sideways or counter-trend trading strategies has served traders well over the last month. This pair tracks U.S. stock indices closely, particularly during U.S. trading hours, and traders are mindful of the parallel support at 160.00 for USDJPY and 1400.00 for S&P futures.
EUR had a nice up day as it probed toward 150.00 to post a 6-week high settlement. GBP eased lower to post a new 9-month low settlement. GBP shorts may find some concern in the recent Commitment of Traders report, which shows sizable long positions on behalf of commercial traders.
Despite continued active trading in the Yen and Yen pairs the majority of volume in the currency markets remains during London and U.S. trading hours.
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