Daily Market Outlook, December 20, 2022

Daily Market Outlook, December 20, 2022 As suggested by wire reports yesterday, the Bank of Japan has confirmed overnight that they will loosen their yield curve control policy, increasing its tolerance band to 0.5%, the confirmation saw the 10-year yield surge to test its ceiling level which added support to the Japanese yen, the move in Japanese government bonds was sufficiently volatile to trigger circuit breaker protection, with the benchmark Nikkei225 currently trading down just under 3%. This move marks the end of the stalwart of easy monetary policy, the BoJ had refrained all year from joining other G7 central banks in tightening monetary conditions, and investors are faced with a new year of broadly tightening financial conditions across all developed markets.  With Asian equity markets retreating in unison with the Nikkei, European bourses are poised for a soggy start to trading, a lack of tier-one data catalysts and declining liquidity in the final full trading week of the year is likely to see a continuation in the softness in risk sentiment, the Euro Stoxx 50 futures printed one-month lows before the open, with the DAX & FTSE futures all pointing to losses of just under 1%. Overnight HeadlinesBoJ Allows Yields To Rise More In Surprise Tweak To PolicyChina Keeps Loan Rates Unchanged, Cut Seen In Next YearChina’s Covid Outbreak Has US Worried Over New VariantsNorth Korea Slams Japan’s Security As Vows CounteractionRBA Considered Pausing Hikes In Dec, Still See More AheadECB’s Nagel: Still ‘Long Way’ From Achieving Inflation GoalUK Lords Warn Labour Shortages Shape Of Things To ComeUK Extend Mortgage-Guarantee Program To Boost HousingYen Jumps To 4-Month Peak Post Hawkish BoJ Policy TweakFX Options Expiring 10am New York CutEUR/USD: 1.0400 (225M), 1.0695-05 (955M)USD/JPY: 132.45-50 (404M), 135.50 (312M)EUR/CHF: 0.9975 (652M)AUD/USD: 0.6505 (622M), 0.6535 (374M)0.6640-50 (396M), 0.6725 (387M), 0.6900 (569M)USD/CAD: 1.3450 (200M),Technical & Trade ViewsSP500 Bias: Bullish Above Bearish Below 3900Primary resistance is 3900Primary downside objective is 3700Above 3950 opens a test of 400020 Day VWAP bearish, 5 Day VWAP bearishEURUSD Bias: Bullish Above Bearish below 1.0550Primary resistance is 1.0650Primary downside objective is 1.0450Above 1.0680 opens a test of 1.073520 Day VWAP bullish, 5 Day VWAP bullishGBPUSD Bias: Bullish Above Bearish below 1.2250Primary resistance is 1.2250Primary downside objective 1.20Above 1.2275 opens a test of 1.234020 Day VWAP bearish, 5 Day VWAP bearishUSDJPY Bias: Bullish above Bearish Below 134.50132 Target Achieved, New Pattern EmergingPrimary resistance is 134.50Primary downside objective is 130Above 135 opens a test of 136.4020 Day VWAP bearish, 5 Day VWAP bearishAUDUSD Bias: Bullish Above Bearish below .6740Primary resistance is .6740Primary downside objective is .6535Above .6775 opens a test of .689020 Day VWAP bearish, 5 Day VWAP bearishBTCUSD Bias: Intraday Bullish Above Bearish below 16200Intraday 16200 is primary supportPrimary upside objective is 17200Failure at 16000 opens a test of 1550020 Day VWAP bearish, 5 Day VWAP bearish

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/daily-market-outlook-december-20-2022"
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