Inflationary pressures in the Eurozone remain tame, as evident over the past two days with CPI readings out of Spain, France, and Germany. The ECB is failing its mandate of price stability, and more opposition to its quantitative easing and negative interest rates amasses. Economic data remains overall weak across the Eurozone, but the EURJPY advanced to the upper band of a strong horizontal resistance area. Will bulls attempt a breakout, or can bears force a breakdown? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

Japanese machine orders surprised economists with a strong advance for November, more than erasing October’s contraction. The signing of the partial trade deal between the US and China is concluded, with doubts immediately emerging. Disappointed forex traders may rush to the safe-have Japanese Yen, adding to rising bearish momentum in the EURJPY. Where is this currency pair headed to next? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.