First it was the euro, coming off its unrealistic high levels, not only against the USD. Of course, the euro and yen are not comparable by any means. While the EUR has now put a lid on, because of fears about debt of some of the currency zone`s nations, the yen market, on unrealistic high levels as well, focuses inceasingly on the BoJ`s serious efforts to reinflate. But as overbought as both the EUR and JPY were against other currencies, so was the dollar equally oversold on unrealistic low levels was. So, against the yen, the Greenback is now in a tandem move with other pairs, a situation we haven`t had since the country`s dive into deflation. Looking ahead into next year, we see a JPY depreciation of almost 30% against the USD and a smaller degree against other currencies.
In today`s trading, we focus on favorable buying points for the USD / JPY, intraday profiting from an emerging longer-term trend. There is no need to hurry since the pair is as overbought now as is the case in other pairs - see below our detailed list for the majors. It is not a data day today except the IFO-Index for Germany for December, which showed a minor improvement in its expansion as expected, but did not move the market.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Trading in an upmove that started in Asian trading, the pair is priced right now at 1.4390 in the early European market. Being now near the intraday resistance 1.4420 level, we expect some consolidation to set in first, followed by further bid momentum leading to 1.4480.
GBP / USD
A clear uptrend has emerged in the pound against the dollar, paving the way for today`s further trading. Currently at 1.6215 in this European morning, we expect a short downward correction to 1.6180, and then further upmoves, limited at 1.6260 for today.
USD / CHF
The down movement of the dollar against the Swiss franc came to a halt at the start of European trading and is priced right now at 1.0420. We see the down momentum being picked up again today, testing eventually the 1.0360 support level.
USD / JPY
The dollar is still acting strongly against the yen and is currently trading around 90.30, near a resistance level. We expect first a consolidation zone, between 89.80 and current prices, resulting in another upmove from 89.80 to levels above 90.20.
In today`s trading, we focus on favorable buying points for the USD / JPY, intraday profiting from an emerging longer-term trend. There is no need to hurry since the pair is as overbought now as is the case in other pairs - see below our detailed list for the majors. It is not a data day today except the IFO-Index for Germany for December, which showed a minor improvement in its expansion as expected, but did not move the market.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Trading in an upmove that started in Asian trading, the pair is priced right now at 1.4390 in the early European market. Being now near the intraday resistance 1.4420 level, we expect some consolidation to set in first, followed by further bid momentum leading to 1.4480.
GBP / USD
A clear uptrend has emerged in the pound against the dollar, paving the way for today`s further trading. Currently at 1.6215 in this European morning, we expect a short downward correction to 1.6180, and then further upmoves, limited at 1.6260 for today.
USD / CHF
The down movement of the dollar against the Swiss franc came to a halt at the start of European trading and is priced right now at 1.0420. We see the down momentum being picked up again today, testing eventually the 1.0360 support level.
USD / JPY
The dollar is still acting strongly against the yen and is currently trading around 90.30, near a resistance level. We expect first a consolidation zone, between 89.80 and current prices, resulting in another upmove from 89.80 to levels above 90.20.
