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The focus of traders today is the publication at 13:30 (GMT) of fresh inflation data in the US. Economists expect the consumer price index to drop to 6.5% in December (from 7.1% in November) and core CPI to 5.7% (from 6.0% in November), which confirms market expectations for further lower inflation in the US. If the data is confirmed or even softer, then a further fall in the dollar, apparently, cannot be avoided, we noted in our today’s “Fundamental Analysis“.
Against the backdrop of demand for protective assets, the yen is strengthening today, both against the dollar and in cross-pairs, in particular, in the EUR/JPY pair. At the time of publication of this article, it is trading near the 141.00 mark, storming the strong support levels 141.45, 141.27.
In case of further fall, the target will be the key support level 140.30. Its break and break of the important long-term support level 139.20 will significantly increase the risks of EUR/JPY transition into the medium-term bear market zone, sending the pair to the key support level 131.70. A breakdown of the support level at 127.40 will complete the pair’s transition to the long-term bear market zone.
Support levels: 141.00, 140.30, 140.00, 139.20, 139.00, 138.00, 137.30, 137.00
Resistance levels: 141.27, 141.45, 142.00, 142.18, 142.45, 143.00
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Image and article originally from www.mql5.com. Read the original article here.