EUR/USD: Traded very heavy yesterday even without any data or news and is now close to the year-low. We expect the market to be taking positions for the next few days but remember that ECB President Draghi never disappoints. Go short closer to 1.2400 and add at 1.2425-30 with stops at 1.2455.
USD/JPY: Has been steadily heading higher from the 118 low and this is likely to continue given the general dollar strength and supportive UST yields. Buy on dips to 119.00-10, which was a good intraday support in New York and overnigh
GBP/USD: Sterling consolidated yesterday and gradually shed gains overnight. Cable is holding the recent range due to lack of interest into the year-end. We still prefer selling EURGBP on rallies and buying cable on dips.
UBS