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Forex pairs in this Article » EUR/USD, USD/JPY (San Francisco) - Low volume was the tone of the day as investors were reluctant to take movements in the first trading day of the year. It seems market is waiting for Monday to start the action.

The Dow and S&P posted its worst day in 3 weeks and posted its first negative start to year since 2008. US 10 year yields rose above 3% again and reached 2.5-year high. The oil collapsed 3.0% to a low of $95.44 and the Gold rallied 2.0%.

"Stocks strong slide has given safe havens dollar and yen some air in the short term, albeit seems quite too early to consider more gains for the refugee currencies," chief analyst Valeria Bednarik comments.

The EUR/USD declined hard from 1.3775 opening area to test the December 20 low at 1.3627 and close at 1.3665. Indicators are corrective from oversold in the hourly chart while negative in the 4-hour. "A break below 1.3620, immediate support is still required to confirm a downward extension, while the 1.3710 area caps the upside in the short term," Bednarik affirms.

The Yen traded higher against the US Dollar and the Japanese Yen as market was on retracement mode from December gains. The USD/JPY lost the 105.00 position and closed at 104.70 while the EUR/JPY collapsed 200 pips from 145.00 to break below the 200 hours MA and close around 143.00.

Main headlines in the American session:

US weekly jobless fall 2,000 to 339,000

Markit US PMI 55.0 in December final versus flash reading of 54.4

US: ISM Manufacturing PMI falls to 57 in December

US: Construction Spending up 1.0% in November

First negative start to year in 6 in Wall Street
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