The public service sector in Japan continued to contract

Looking at the chart on the weekly time frame, we see a strong bullish trend from March 2020, with the potential to continue further towards higher levels on the chart towards 82-83.00. The pair also crossed the moving average of the MA200 last week, so it now has the support of all moving averages. By setting the Fibonacci, we see that 61.8% was made a break above, unlike the previous pullback where the rejection was at the same level. Now we can expect the pair to move to Fibonacci level 78.6% 83.80. A bullish scenario is very likely in the next period.

On the daily time frame, we see the pair moving in a growing channel with support for all moving averages (MA20, MA50, MA100, and MA200). For now, some resistance can be seen in the form of the upper trend line at around 81.00. The bullish scenario is so strong that no possible reversal of the trend can be seen for now. Less consolidation is always possible in a smaller time frame.

On the four-hour time frame, we see that the pair has been moving upwards since the beginning of November. Since then, there is a strong bullish trend, where the pair makes a break above the moving averages and now has the support of all moving averages. by that, it is realistic to see the pair at 81.00, where we can expect a possible consolidation and a smaller pullback for the new turn towards higher levels.

From the news for these currencies, we can single out: The public service sector in Japan continued to contract at a faster pace, according to the latest research by Jibun Bank on Wednesday with a PMI service rating of 47.7. The services sector in Australia continued to expand faster in December, the latest Markit Economics survey revealed on Wednesday with a five-month high PMI score of 57.0.