Mr. Yen, how much further can the Japanese currency drop? Last week, it experienced a significant decrease in value. Although the decline has not worsened this week, it will require significant effort to convince me that there will be a shift in momentum.

Currently, the USD/JPY is gradually advancing towards 142.00, but it may encounter a bit of opposition from its 21 November peak at 142.25, prior to achieving 145.00. Meanwhile, the EUR/JPY and GBP/JPY are noteworthy in their own right. The former has reached its peak since 2008, currently trading over 155 levels, following a breach of 150. The latter has attained its apex since 2015, hovering around 181.50, with little resistance impeding its approach toward the 2015 highs, located just above 195.

The bond market will remain an important area to monitor in this regard. However, despite the lack of strength in the dollar, Treasury yields have shown considerable durability following the actions of the Fed.

In other places, gold is still facing difficulties because sellers are considering the possibility of testing the 100-day moving average once more. The significant level of support is currently around $1,942 and will be important to monitor in the upcoming week.

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