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.

GBP/USD

Buyers of the British currency do not stop trying to update last week's high at 1.2770. There was little incoming fundamental data from the UK at the beginning of the current five-day period, as a result of which the pair is trading in a rather narrow range between 1.2760-1.2680. However, by the end of the week, volatility for the pair is possible, which could lead to the end of the sideways movement.

Today at 16:30 GMT+3, we are waiting for the publication of data on the consumer price index in the United States for December. Tomorrow at 10:00 GMT+3, the UK GDP figure for November will be published.

EUR/USD

The single European currency is trading near important resistance at 1.1000. If buyers of the pair manage to gain a foothold higher, the price may resume growth towards the December highs of last year at 1.1140. A breakdown of support at 1.0880 may contribute to the resumption of downward movement in the direction of 1.0720.

Tomorrow at 10:45 GMT+3, we are waiting for data on the consumer price index in France for November.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.