The dollar’s gain over the ISM is all wiped out
USDJPY stopped in a dime at 112.50 after getting all excited over the ISM. In real terms it just about managed a 30 pip move, which isn’t anything impressive, except in the context that we’d been asleeep in a 20 pip range all day.
So, back in the box we go and intraday support ahead of 112.00 at 112.15/20 comes into play again.
In EURUSD we’re also back to square one after the data and knocking around the earlier resistance at 1.2035. I took half my long from 1.2006 off at 17 and the balance at 1.2029 (or 1.20288) to be precise). 1.2000 did it’s job and should continue to do so while nothing else is happening. The Fed minutes later might bring a bit of vol back into things.
I’m still loathed to accept much of what I’m seeing in markets, in this first new week of the year, so next week will be a better reflection of how things will develop. In the ForexFlow 2018 trading preview I mentioned that we should be preparing to trade lower volatility in markets. I hope this week isn’t an omen for that prediction.