JPY Trading Outlook (12-01-2015)

USD/JPY A very brief USD/JPY rally on the above-f/c NFPs was followed by a plunge to new session lows at 118.42 when the second assessment of the jobs report sent Tsy yields and stocks into retreat. Worrying HLs out of France and somewhat dovish Fed speakers added to the risk & USD-off theme. N225 futures fell with other major indices, though the worst losses were in Europe, which, along with fresh ECB QE speculation, was enough to take EUR/JPY below its 200-DMA at 140.31, but not below the 61.8% of the Oct-Dec rise at 140.12 thus far. CAD/JPY was a standout loser today on renewed oil selling and weak Can econ data. It’s threatening the daily Cloud base & 50% of the Oct-Dec rise, both at 99.68. The weekly Kijun is at 99.60. GBP/JPY is probing several supports at 178.83. A holiday on Monday in Japan may subdue yen dealings, but the overall fundamental flow pattern favors outbound investment, partly offset by a better Trade balance amid tumbling energy prices. This suggests any early-year USD/JPY corrections would find excellent support waiting in the wings.