The Yen Resumes Its Decline, the Euro and the Pound Test Important Levels
Towards the end of the current five-day trading period, in most currency pairs we are seeing a continuation of the sluggish flat movement. Thus, the pound/US dollar pair is trading near last week’s highs at 1.2770, the euro/US dollar pair is trying to get closer to the psychological level of 1.1000, and commodity currencies are also caught in narrow flat corridors. But the US dollar/yen pair paints a slightly different picture. After a downward pullback last Friday, buyers of the pair found support at 143.40 and strengthened the price by more than 100 points in just one day. We will see whether it will be possible to maintain the upward mood for the pair today after the publication of inflation data in the United States.
USD/JPY
Negative fundamental data from Japan published this week contributed to the resumption of the downward movement in the yen. Thus, the household expenditure index in November was at -2.9% against the forecast of -2.3%. The total income of employees in the form of wages in Japan also decreased over the same period: 0.2% versus 1.5%. As a result of such data, the price almost tested last week’s high at 146.00. If buyers manage to strengthen the pair above the mentioned level, the price may continue to rise in the direction of 147.00-148.00. A downward breakdown of the range 144.00-143.00 may contribute to a decline to the December extremes at 140.80-140.30.
