JPY Trading Outlook (20-12-2011)

The Japanese Yen (JPY) the USD/JPY broke above Y78 as the North Korea news broke with Japan a close neighbor and potential target in any threat by a new North Korean leader flexing his countries military might. The market was unable to hold the gains however falling back as risk aversion hit the crosses dragging the EUR/JPY and AUD/JPY lower. The market is still grinding higher however and could break to the topside as longer term shorts lose patience.

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