Market Analysis: The Yen and European Currencies Strengthen Sharply

<img src="https://fxopen.com/blog/en/content/images/2023/12/Yes_and_Dollar__1_.jpg" alt="Market Analysis: The Yen and European Currencies Strengthen Sharply" /><p><br>In the last five-day trading period of the outgoing year, we observed the &#x201C;pre-New Year&#x2019;s rally&#x201D; characteristic of this period in the market. In just a few trading sessions, the euro/US dollar pair has consolidated above 1.1100, the pound/US dollar pair is preparing to test 1.2800, and the US dollar/yen pair has fallen below 142.00.</p><p><strong>GBP/USD</strong></p><p>On the GBP/USD chart, buyers of the pound this week managed to update the December high and test important resistance at 1.2800. If the current situation continues for several weeks, a test of the psychological level of 1.3000 and continued growth towards the July highs at 1.3150 are possible.</p><p>Today at 16:30 GMT+3, weekly data on the number of applications for unemployment benefits in the United States will be released. Tomorrow at 10:00 GMT+3, the UK house price index for December will be published.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/12/image-8.png" alt="Market Analysis: The Yen and European Currencies Strengthen Sharply" loading="lazy" width="1920" height="906" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/12/image-8.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/12/image-8.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/12/image-8.png 1600w, https://fxopen.com/blog/en/content/images/2023/12/image-8.png 1920w" sizes="(min-width: 720px) 720px" /></figure><p>On daily and weekly time frames, the price is above the alligator lines, the AO oscillator is green, which indicates growth on the breakout of the upper fractal. We can consider a reversal of the upward scenario if it confidently consolidates below 1.2600.<br></p><p><strong>EUR/USD</strong></p><p>According to EUR/USD technical analysis, the single European currency not only confidently strengthened above the psychological level of 1.1000, but also tested 1.1120. If investors remain in a buying mood for the euro, the price may update the current year&#x2019;s maximum at 1.1270.</p><p>From the point of view of fundamental analysis, tomorrow at 11:00 GMT+3, we are waiting for the publication of data on the harmonised consumer price index in Spain. Also, at 15:10 GMT+3, it is worth paying attention to the speech of the representative of the Bundesbank Burkhard Balz.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/12/image-6.png" alt="Market Analysis: The Yen and European Currencies Strengthen Sharply" loading="lazy" width="1920" height="906" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/12/image-6.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/12/image-6.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/12/image-6.png 1600w, https://fxopen.com/blog/en/content/images/2023/12/image-6.png 1920w" sizes="(min-width: 720px) 720px" /></figure><p>On the weekly timeframe, the price is above the alligator lines, the AO oscillator is green and above zero, which may signal further strengthening of the pair.<br></p><p><strong>USD/JPY</strong></p><p>Investors&apos; expectations about a change in the vector of the Fed&apos;s monetary policy are pushing the US dollar/yen pair lower and lower. Last week, on the USD/JPY chart, the price corrected to the 145 figure, but failed to develop a full-fledged upward movement. Yesterday, the pair lost more than 100 pips and is currently trading slightly above 141.00. If the downward movement continues, a breakdown of the recent low at 140.90 is quite possible.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/12/image-7.png" alt="Market Analysis: The Yen and European Currencies Strengthen Sharply" loading="lazy" width="1920" height="906" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/12/image-7.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/12/image-7.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/12/image-7.png 1600w, https://fxopen.com/blog/en/content/images/2023/12/image-7.png 1920w" sizes="(min-width: 720px) 720px" /></figure><p>Today at 18:00 GMT+3, it is worth paying attention to the publication of data on the index of pending sales in the US real estate market for November.</p>