2008 - year of the Yen?

The dollar posted its biggest decline against the yen in almost two months as a slowdown in hiring raised concern that U.S. economic weakness will spread globally. The U.S. currency fell this week against the euro and Swiss franc as traders priced in for the first time a more than 50 percent chance the Federal Reserve will cut borrowing costs by a half-percentage point on Jan. 30. Import prices were unchanged last month, easing concern inflation is accelerating, the government is forecast by economists to report next week.

China's yuan advanced against the dollar for a fourth week, rising 0.4 percent to 7.274 per dollar, as a local newspaper reported that the central bank signaled it will allow faster gains in the currency to help curb inflation.

Watch the yuan and trade the yen! They yen acts as a proxy for the yuan so it's likely to be a good guide for trend/trade direction.

Have a great trading year!

Zoltan Vass

EURUSD

RESISTANCE: 1.4970

SUPPORT: 1.4550

SENTIMENT: still bullish

 USDJPY

RESISTANCE: 112.30

SUPPORT: 104.20

SENTIMENT: bearish

 GBPUSD

RESISTANCE: 2.0100

SUPPORT: 1.9570

SENTIMENT: bearish – the strong disconnect from the EURUSD is unusual though, be alert!

 USDCHF

RESISTANCE: 1.1270

SUPPORT: 1.0890

SENTIMENT: mixed to bearish

USDCAD

RESISTANCE: 1.0250

SUPPORT: 0.9650

SENTIMENT: mildly bullish, needs a break above 1.0070 to confirm

 AUDUSD

RESISTANCE: 0.88725

SUPPORT: 0.8540

SENTIMENT: mixed to bearish

 GBPJPY

RESISTANCE: 219.10

SUPPORT: 205.60

SENTIMENT: bearish but very oversold

 EURJPY

RESISTANCE: 163.20

SUPPORT: 158.20

SENTIMENT: mixed – getting oversold