EURJPY Settles in the Middle of Consolidation Zone

As of writing, it was up slightly heading into the US session, changing hands at around 141.50.

Germany enters recession

Despite the gas price brake that was announced on Monday, the German government still anticipates that the economy will enter a recession next year, according to Reuters, which cited government sources.

According to current predictions, the GDP will shrink by 0.4% in 2023, while inflation will be 8% and 7%, respectively, in 2022 and 2023.

In other news, a German government spokeswoman was questioned on the potential of joint EU debt for loans and pointed out that just one-fifth of the authorized available funds had been disbursed from the EU's Next Generation fund, according to Reuters.

The spokeswoman said, "The remaining funds might be utilized to address emergencies for a green energy transition."

Finally, the German business journal Handelsblatt reports that the federal government of the nation anticipates a decline in inflation in 2023. The article said that the government anticipates inflation to be 7% in 2022. According to the newspaper, the German government expects inflation to be 8% in 2022.

Consolidation ahead?

Medium-term resistance could be expected at the current cycle highs in the 145 region. If the euro jumps above that level, the bull market would likely be confirmed, pushing the price toward the 150 zone.

Alternatively, the intraday support is seen near 141, followed by the 140 threshold and previous lows near 137.25.