Since the supply at 121 (weekly and monthly R1 levels) withstood USD/JPY's recent attack, the currency pair is vulnerable to a sell-off down to 118.
In the end the monthly S1 managed to push the Cable away from 1.55.
EUR/USD cross was little changed because of holidays on Wednesday, when the trading volume was rather low.
The New Zealand Dollar is currently following a well-defined down-trend that connects all of the highs posted since Nov 16.
Despite the persistence and energy the bulls have recently demonstrated by bringing USD/CAD from 1.135 to 1.167 in seven days, there is likely to be a retracement in the next few weeks.
AUD/USD continues to consolidate near 0.81 following an initial test of this level earlier in December.
As EUR/JPY did not settle beneath 146 but quickly rebounded from 145, the short-term outlook towards the pair remains positive.
Gold was almost completely unchanged during the trading day on Tuesday.
As it turned out, the supply at 120 did not manage to stop the advancement of the US Dollar.
Having taken the support at 1.56 out of the way, GBP/USD is currently putting a lot of pressure on 1.55, which in turn does not appear to be an easy target.
Yesterday, the EUR/USD currency pair dropped considerably and managed to set a new yearly minimum in the very end of December.
NZD/USD is still trading above the 0.77 level and it is likely to stay there in a foreseeable future.
USD/CAD continues to challenge the up-trend's resistance and monthly R2 that are located at 1.1635.
The Aussie dropped to the lowest level in more than four years today, as it dipped below the 0.81 mark.
The EUR/JPY cross has been trading almost completely flat today, as it is still sitting near the weekly PP at 146.47.
On Monday, the bullion declined in price considerably, losing around $25 per ounce to reach the weekly S1 at $1,177.
USD/JPY has breached the psychological level at 120 and it has a potential to trade even slightly higher.
The British Pound continues to underperform against the US Dollar, as it has dipped below the 1.56 level today.
On the first day of this working week, the EUR/USD cross decided to stay pretty much unchanged, as it continued to trade in the vicinity of the monthly S2 and 2014 low around 1.2220.
The Kiwi similarly to the Aussie has not changed much since today's opening, after sliding slightly lower last week.
The EUR/JPY cross has started the week strong by breaking the weekly PP at 146.47.
As expected the US Dollar is very likely to hold its positions above the 1.15 levels and there is a rather high possibility that the pair could end the year even above the 1.16 mark
AUD/USD is currently hovering above the 0.81 level; although, it has not changed almost at all since the drop on Wednesday.
Last Friday, the bullion fell slightly to trade around $1,195 per ounce at the end of trading session, even though the overall picture for the metal remained neutral.