There are some “December to Remember ” influences in the market today. The USDJPY fell in sympathy with the EURUSD initially. Then rallied to the 120.00 to 120.14 key resistance area (see earlier post HERE). Holding that seemed to have been the perfect high… almost too perfect. It was TOO perfect.
USDJPY certainly has had a volatile time of it.
That level was taken out with an extra 10 pip move to newer day, year, 8 year high at 120.236.
Some may say, the dealers were having their way – playing with the mouse so to speak. I say – maybe in a naive way – that the market was just plain nervous at the key levels and some “Lines in the Sand” at 120.00 to 120.14 were taken out forcing the cover up to 120.24. That’s life as a trader. You win some. You lose some. It does not end the game though (until Friday at 4:00 PM ET that is).
Whatever the case, the move back above the 120.00 level lasted just long enough to get the “above 120.00 buyers” thinking 12200, 12400, even 125 was not far away (it stayed above for 30 minutes or so).
However, that optimism fizzled, and the buyers turned to sellers. The pair tumbled nearly 100 pips back to the 38.2% retracement of the move up this week (see chart above) and bounced. Fast break the other way. Just look at the tails on those candles. Geez. Have you had enough? What an excellent adventure.
The good news is my dentist called with a cancellation that allows me to have something I need taken care of done. So at least, I have that going for me….