Japanese CFTC JPY net positions fell from ¥17.4K to ¥-2.9K. This change highlights a shift in how the market views the Japanese Yen. The EUR/USD remains below 1.1800 with low market activity ahead of the New Year holiday. GBP/USD has dropped under 1.3500, but losses are held in check due to calm financial markets.

Gold And Cryptocurrency Movements

Gold has decreased by over 1%, falling from a record $4,550 to $4,450, as hopes for a peace deal between Ukraine and Russia increase. Bitcoin, Ethereum, and XRP have each gained about 3%, even with low trading volume during this season. The economic outlook for advanced countries in 2026-2027 looks bright. Supportive factors from 2025 are likely to continue driving this positive trend. Avalanche is facing challenges near $12, with a nearly 2% drop. Grayscale has submitted an updated application to the SEC to change its Avalanche-focused Trust into an ETF. FXStreet emphasizes that the information is not a recommendation for asset transactions. Readers should conduct thorough research before investing, as the market carries risks and potential losses. The author and FXStreet are not responsible for any errors or omissions and do not provide personalized investment advice.

The Yen And Market Expectations

There has been a significant change in Japanese Yen positions. For the first time in months, speculative funds hold a net short position. This shift from ¥17.4K net long to ¥-2.9K net short reflects a strong belief that the Yen will weaken. This trend is consistent with the continuing interest rate gap between the Bank of Japan and other major central banks, which influenced trading in 2023 and 2024. Gold’s retreat from its record high above $4,500 seems connected to profit-taking and increasing hopes for resolving the Ukraine conflict. Recent data shows that inflows into gold-backed ETFs, which peaked earlier in 2025, turned negative for the first time in six months. This signals an opportunity to consider put options as we may see further corrections as geopolitical risk decreases. With low trading volumes during the holidays, we might see sharp movements in the US Dollar. Currently, the market is cautious ahead of the Federal Reserve’s upcoming December meeting minutes, which could influence the start of 2026. Given the thin liquidity, trading options on pairs like EUR/USD may be wiser than making direct bets before the New Year. Create your live VT Markets account and start trading now.

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