Japanese inflation data came in as expected and confirmed the absence of inflationary pressures. Department store sales slumped, but convenience store sales expanded. The USDJPY reversed from its highs while it remains inside its horizontal resistance area. Forex traders now await a batch of US economic data. Will it initiate a sell-off in this currency pair or can it renew a bullish push? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.

US personal income and spending data will give forex traders a key economic report to finish the last full trading week of 2019. Economists predict an increase in both categories. The final third-quarter GDP and December consumer confidence data will also be released together with a regional economic report. How will it impact price action in the USDJPY, which started to retreat from its recent high? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.