A week before the important central bank meetings of the FED (14.) and the ECB (15.), their employees are on mute. That leaves room for speculation but could also dampen the momentum in the market. With regard to the Dollar-Index (DXY) the last support zone around 104.64/63 has held and the Dollar may have a small bias to the upside for now. The 106 and 107 could be the respective targets. Below 104.50, however, it becomes dangerous again with Dollar longs.
EURUSD -- 1.0515
The upper Bollinger band (1.0599) works well as resistance. However, the downside is limited as early as 105.00/104.80, showing that the market is in wait mode for fresh impetus. Movements towards 1.0425 and 1.0600 without news could be bought or sold first. We won't see until Thursday next week whether it could be closer to 1.0100 or 1.0800 at the end of the year.
GBPUSD -- 1.2223
“As long as Sterling trades below the upper Bollinger band (1.2344) you may think about fading the rally” (#118). Yesterday's high was 123.45, almost a spot landing. I still think there is some room to the downside after the impressive 3 month rally. Next important support comes in at the 200 dma (1.2139). Below that level spot rates of 1.19xx are quickly possible. Above 123.45 I would get rid of shorts for the time being.
USDJPY -- 136.20
The recommendation to take profit ahead of the 200 dma (134.72) was correct. And I do not think that with the high at 137.44 today, the Dollar recovery against the Yen is completely over yet. A possible first target could be the mid Bollinger band (139.17). Nevertheless, you have to accept a retest of the 200 dma and, if it breaks, you better get rid of longs for the time being.
Good luck,
Sebbo