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ForexLive European morning wrap: BOJ fallout sets the tone for a lively session

Forex news from the European morning session 18 Dec

News:

Data:

It's been a busy one to say the least after the BOJ sent out a curve ball that yen pairs first soar then plunge and it's been reverberating all session.

Too many twists and turns to record every one ( just look at your 5 minute charts) suffice to say it's been rapid, thin and somewhat dangerous.

USDJPY has been in solid retreat for the most part as traders unwound short-yen positions and we've seen 121.06 so far with 121.50 now becoming pivotal. Yen pairs have seen similar downward pressure and EURJPY declines to 131.03 prompting EURUSD unloading from corps along the way. EURUSD tumbled to 1.1805 from 1.0855 in rapid time but large option expiry support is providing a good base and springboard to 1.0836 as I type.

Elsewhere we've also seen USD demand with cable failing at 1.4950 and testing 1.4900 support and with these moves on core pairs we've also seen EURGBP fall to 0.7240 after failing again into 0.7280 in Asia.

USDCHF has found supply through EURCHF selling and some safe-haven demand generally while USDCAD has drifted off to post 1.3910 as oil prices firmed but has since risen again to 1.3971.

AUDUSD and NZDUSD have been caught up in the cross-play crossfire with large option expiries also casting their shadow here too.

It's looking a bit ugly and caution is once again advised.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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