The People’s Bank of China decided to decrease the interest rate on its 1-Year Loan Prime Rate by 5 basis points to 4.20%, but countered this move by a 5 basis point increase in its 1-Year Loan Prime Rate to 4.85%. This surprised markets today where the overall mood is geared towards risk-off. German PPI data showed a monthly increase, but pointed towards an annualized slowdown. The EURJPY is drifting lower after moving into resistance, what impact will today’s advance consumer confidence data out of the Eurozone have on price action? Subscribe to the PaxForex Daily Fundamental Analysis and take the profitable side of this trade.

Japanese CPI data released during the Asian trading session pointed towards the absence of inflationary pressures. The Bank of Japan raised concerns that momentum to achieve its inflation target of 2.0% is fading. The Japanese Yen did catch bids as forex traders are lowering risk heading into the weekend. Bearish momentum is on the rise, can the EURJPY complete a breakdown below resistance? Today’s fundamental analysis will explore the downside potential and take a look at the upside risk in this currency pair.