EUR/USD (a 4-hour chart)
The last trading day was very interesting from the point of view of major currencies fluctuations. There was an increased volatility after several days of calmness. EUR/USD and GBP/USD set fresh yearly highs on Friday. Amid the low liquidity and an empty macroeconomic calendar traders dispersed quotes upwards; then the sharp decline of the European and British currencies happened in the American trading session. As we said before it is necessary to be very careful as the market makers is going to lead the game and it is not easy to overcome them.
The fresh annual maximum was also established by the pair USD/JPY. A whole block of macroeconomic statistics was published in Japan. Inflation grew in November to the level 1.5% y/y, and the report on retail trade showed the maximum for 18 months. Against this positive background the Japanese currency could slightly strengthen its position against the American competitor to the level 104.64. However since the European trading session there was a growth of quotations of the American currency. Investors lay in the rates possible increase of the stimulus program from the Central Bank of Japan since the second quarter of 2014. This is a positive factor for the growth of the dollar/yen pair.