Be on the lookout for quiet price movements ahead of the year-end market rally

Be on the lookout for quiet price movements ahead of the year-end market rally

24.12.2021

Yesterday, the three major U.S. stock indices all rose for the third consecutive day, creating a risk-on sentiment characterized by rising stock prices, interest rates, and oil prices. Although U.S. new home sales for November, released yesterday, came in at 744,000 units—falling short of market expectations—they reached their highest level in seven months.Gold rose and traded in the $1,808 range, while the yield on the 10-year U.S. Treasury note climbed to 1.49%.

In the foreign exchange market, cross-yen pairs are generally rising, with GBP/JPY—which saw the largest gains—climbing approximately 150 pips from 152.20 to 153.71.From a technical perspective, GBP/JPY is showing momentum toward the recent 4-hour high of 154.03. Since it has also firmly broken above the 200-day SMA on the daily chart, we need to carefully assess whether this signals the start of an uptrend and whether the pair will continue to rise.

Since markets in Europe and the U.S. will be closed today for the Christmas holiday, no major economic indicators or key speeches are scheduled. Furthermore, with the number of market participants expected to drop sharply, liquidity is likely to decline significantly. Rather than forcing trades, I plan to adopt a wait-and-see approach today to assess market conditions, anticipating price movements starting next week.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed