FOREX: USD/JPY Slippage Exposes January Low

WTI futures are trading higher today as the contract extends recent gains. A stronger reversal to the upside would refocus attention on key short-term resistance at $76.41, the Oct 8 high. Initial firm resistance is unchanged at $71.97. A bear threat in Gold remains present. The yellow metal traded sharply lower on Dec 18 and the move undermines a recent bull theme. A resumption of weakness would open key support at $2536.9, the Nov 14 low.

• WTI Crude up $0.4 or +0.56% at $71.41
• Natural Gas down $0.14 or -3.51% at $3.799
• Gold spot up $8.09 or +0.31% at $2614.49
• Copper down $3.3 or -0.81% at $405.95
• Silver up $0.01 or +0.05% at $28.961
• Platinum up $8.16 or +0.9% at $912.55

A bear threat in the S&P E-Minis contract remains present and the latest move down highlights the end of the recent Dec 20 - 26 corrective bounce. An extension lower would expose 5866.00, the Dec 20 low and a key short-term support. A bull cycle in the Eurostoxx 50 futures contract remains intact, however, the recent move down highlights a corrective phase. Despite the latest bounce, a short-term bear threat remains present - for now.

• In China the SHANGHAI closed lower by 55.563 pts or -1.63% at 3351.763 and the HANG SENG ended 18.53 pts higher or +0.09% at 20059.95.
• Dow Jones mini up 56 pts or +0.13% at 42977, S&P 500 mini up 17.75 pts or +0.3% at 5976.25, NASDAQ mini up 87.75 pts or +0.41% at 21503.25.

China adjust the currency weightings as part of the CFETS RMB Index: Full basket of currencies now composed of 25 currencies, having included the Macau Pataca (MOP) for 2025:

• USD weighting dropped to 18.903% from 19.460%
• EUR weighting dropped to 17.902% from 18.080%
• JPY weighting dropped to 8.584% from 8.963%

Full list found here: https://iftp.chinamoney.com.cn/chinese/zxpl/20241231/3028340.html