DAILY MARKET OUTLOOKUpdate Time: 16 Dec 2014 07:54 GMT
USD/JPY - The greenback swung wildly on Monday following the Japan's election on Sunday. Despite opening higher to 119.04 in New Zealand yesterday, the pair tumbled to 117.78 ahead of Tokyo open and then rallied to 119.06 in Asia.
U.S. dollar later met renewed selling at 118.98 in NY on renewed risk aversion due to the sell off in global stock markets.
Today's breach of last Thursday's low at 117.45 confirms recent decline from last Monday's fresh 7-year high at 121.85 to retrace medium-term uptrend has resumed and further weakness to 117.06 and then towards 116.40/41 is likely, however, o/sold condition would limit downside to 116.00 and bring a much-needed correction later.
On the upside, only a breach of 118.00/01 would signal a low has possibly been made and bring stronger gain to 118.98/06 and then towards 119.56.
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