USD/JPY, GBP/USD, EUR/USD Analysis: European Currencies in Consolidation Phase, Yen Declining

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Better-than-expected US labour market data contributed to a sharp rise in the dollar against the yen and commodity currencies. At the same time, the euro and pound fell slightly, while managing to remain above strategic levels.

USD/JPY

The Japanese currency rose sharply last week as information emerged that the Bank of Japan may soon end its ultra-low rate policy and move on to tightening monetary policy. Investors exited long positions in the US dollar/yen pair, as a result of which the price tested the important range of 142.00-141.00. The latest US employment report for the year was published on Friday, showing an increase in average wages and an increase in new jobs. Indicators above the forecast contributed to the corrective growth of the pair to 146.00. Whether there will be a full resumption of the upward movement in the pair will most likely become clear in the coming trading sessions.

Today at 16:30 GMT+3, we are waiting for data on the consumer price index in the United States; a Federal Reserve meeting is scheduled for tomorrow.

On the daily USD/JPY chart, the price is below the alligator lines; sales may be a priority. With the appropriate foundation, a resistance test at 146.60-148.00 is possible.

GBP/USD

On the GBP/USD chart, the British currency is trading between 1.2500-1.2600. There is not enough news to resume the downward movement, and investors in the pound are not yet in a hurry to open new buy orders.

Today at 10:00 GMT+3, we are waiting for data on average wages and changes in employment in the UK for October. Tomorrow morning the UK GDP figure for the same period will be published.

On the daily timeframe, the pair is testing support at the alligator lines. The price behaviour at 1.2500-1.2450 will be important for the pair’s pricing.

EUR/USD

According to the EUR/USD technical analysis, the single European currency found support just above 1.0700. Sellers of the pair have been trying to break the range of 1.0740-1.0720 for several trading sessions, but so far without success.

Today at 12:00 GMT+3, we are waiting for data on the ZEW economic sentiment index in the eurozone for December. Tomorrow at 13:00 GMT+3, the eurozone industrial production volume for October will be published.

On the daily timeframe, the price is below the alligator lines. With appropriate fundamental data, the pair may test 1.0720-1.0650.

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