Volatility is back in time for some Christmas Pips!
The last few weeks (mainly last week) have seen a very choppy and quiet market all round with many pairs simply ranging or moving sideways whilst waiting for something to kick the market into gear as we ended the month of November. Then, December started and boy oh boy have we had a kick that we needed!!
The first London session of the week alone saw more movement than the whole of last week and we have seen some great moves in the market! So many moves it’s hard to believe it is only Wednesday and we have another two days of this week! December has started with a bang giving us lots of PIPS as we head into the Xmas period.
One of the biggest moves has been USD/JPY as seen on my chart with price declining over 140 PIPS with 110 of those being captured by the BD FOREX community. Price had been stalling around the 109.50 level at the end of last week and early this week we saw the signs we needed to take a beautiful short trade before the drop giving us a zero drawdown trade running straight into profit.
What will price do now though? Well, price has had a very nice break through the daily trend line support and price action has been able to continue the bearish momentum to where it now finds some support at the 108.50 level. Though we are finding support here with the weight of the last two bearish daily candles sitting heavy on this support level it looks like we will be pushing lower.
Today is currently printing a Daily DOJI candle which on the lower time frames shows price making a small pull back / retracement but currently failing to push higher and continuing to trade below the broken trend line. If we can see price stay below this level today, we will likely see a roll over to the downside this week. The USD has been on the back foot since the market open on Sunday evening and is finding it hard to gain any ground.
Short bias is preferred on this pair however, this week is the first week of the month which means ?????……..NFP (Non-Farm Payroll) will be released on Friday, the biggest US data release of the month so we will have to watch this one carefully in the run into Friday.