USD/JPY: With nothing new from the BoJ, we want to go along with risk and buy USDJPY, preferably on a dip to 118.70/80 with stops below 118.40, where the pair held well yesterday. First resistance is at 119.70/80, after which there is not much up to the quarterly Ichimoku level at 121.70.
EUR/USD: The bearish tone is still intact even though we have historically seen some buying interest into the year-end. We would remain flexible but will be happy to enter shorts around yesterday’s high with stops at 1.2405 into the Christmas week.
AUD/USD: We prefer to buy the pair on dips given that Fed Chair Yellen sounded hawkish on Wednesday.
UBS