15 Dec 2014



The rate is once again putting pressure against the december's range resistance at 1.2500 level.  A daily close is needed to trigger further retracement higher, however, it is highly unlikely with only one full trading week left this year, and Fed rate decision coming up on wednesday.

As the RSI is currently breaking the most recent bullish momentum it seems the rate could be stuck in a small triangle range.

A break below 1.2360 level should take the rate down to test the yearly lows around 1.2260 level.


The cable is also working on it's december range highs at 1.5763. A break higher should take the rate higher to test the 1.5830 level, however a failure here and a break below 1.5700 should take the rate down to 1.5650 and 1.5600 levels.


If the risk aversion theme from last week continues, I think we have a chance of all the yen pairs trading lower for the rest of the year.

After bouncing of the 117.40 support level the rate is now stuck in a bearish pennant formation. A break below this level may take the rate down to 115.50 and 113.00 levels.

A break back above 120.00 level should leave the rate ranging between 120.00 and 121.84 levels for the remainder of the year.


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