Looking at the charts, USD/JPY and bond yields are perhaps the two key spots to watch at the moment.
The former is looking for validation in keeping a break above 116.00 while the latter is being rather pensive in establishing a topside breakout of its recent wedge pattern.
But those are not the only things in play right now. GBP/JPY is on approach to its October high of 158.00 with CAD/JPY also rebounding strongly from 88.00 to above 91.00 currently.
As for dollar pairs, the other more interesting ones are perhaps GBP/USD - which is running into a test of its 100-day moving average this week - and USD/CAD - which bounced off its own 100-day moving average but keeping below key near-term levels.
Besides that, gold is holding up at $1,800 but any major upside break remains elusive. If the lull continues, that might be worrying considering January is typically a strong seasonal month for gold.
Meanwhile, stocks are looking rather tentative and perhaps there might be room for caution after the recent highs. But in the bigger picture this year, is there a better approach than to buy the dip? I reckon we're all waiting for a more meaningful drop before stepping into that.
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