Against the weakening of the US currency, the USD/JPY pair declines, trading around 129.15, while the yen has reached the levels of last May.
A meeting of the Bank of Japan scheduled for next week will look at the side effects of monetary easing and possible steps to correct distortions in the yield curve, Reuters reported. The volume of outflow of foreign investment in the country's stock market began to decline and amounted to 199.1B dollars this week after losing 265.1B dollars last week, and the M2 monetary aggregate in 2022 slowed growth to 2.9% from 3.1 % earlier, but this is still a non-critical lag behind the baseline values of the year at 3.1–3.3%.
Yesterday, the key December data on US inflation came out: the figure fell to 6.5% from 7.1% a month earlier, and the core consumer price index fell to 5.7% from 6.0%, which, however, was already taken into account by the market and did not have a positive impact on the quotes of the national currency, which as a result fell to 102.000 in the USD Index.
On the daily chart, the trading instrument moves within a local downward corridor, consolidating below the low of the end of last year around 130.00.
Technical indicators strengthen the sell signal: fast EMAs on the Alligator indicator remain significantly away from the signal line, and the AO oscillator histogram forms corrective bars below the transition level.
Resistance levels: 130.60, 134.40. | Support levels: 127.16, 123.80.