DAILY MARKET OUTLOOKUpdate Time: 05 Jan 2016 09:09 GMT
USD/JPY - 119.21
Despite yesterday's intra-day sharp selloff below 120.01 sup (now res) to an 11-week trough of 118.70 due to active buying of yen on risk aversion following intra-day global stock market rout, subsequent short-covering rebound in New York to 119.50, then 119.70 in Asia suggests choppy sideways trading is in store, as long as said Asian high holds, outlook remains mildly bearish for weakness to 118.60/70, however, near term loss of momentum should keep dollar well above daily chart sup at 118.06 (Oct low).
On the upside, only a daily close above 120.01 confirms temporary low is finally made and risks stronger correction to 120.47.
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