EURJPY Settles in the Middle of Consolidation Zone
11 October 2022
It looks like the recent wild swings in the EURJPY cross might be over, as the single currency seems to be settling above the important 140 threshold.
As of writing, it was up slightly heading into the US session, changing hands at around 141.50.
Germany enters recession
Despite the gas price brake that was announced on Monday, the German government still anticipates that the economy will enter a recession next year, according to Reuters, which cited government sources.
According to current predictions, the GDP will shrink by 0.4% in 2023, while inflation will be 8% and 7%, respectively, in 2022 and 2023.
In other news, a German government spokeswoman was questioned on the potential of joint EU debt for loans and pointed out that just one-fifth of the authorized available funds had been disbursed from the EU's Next Generation fund, according to Reuters.
The spokeswoman said, "The remaining funds might be utilized to address emergencies for a green energy transition."
Finally, the German business journal Handelsblatt reports that the federal government of the nation anticipates a decline in inflation in 2023. The article said that the government anticipates inflation to be 7% in 2022. According to the newspaper, the German government expects inflation to be 8% in 2022.
Medium-term resistance could be expected at the current cycle highs in the 145 region. If the euro jumps above that level, the bull market would likely be confirmed, pushing the price toward the 150 zone.
Alternatively, the intraday support is seen near 141, followed by the 140 threshold and previous lows near 137.25.