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The fluctuated trend had continued during the 2016 year on the EUR/JPY parity. The starting point was 128.39 level for the parity at the beginning of the year. With beginning the second half of the year, the parity has experienced a strong decrease, and reached to 111.15 level at 3rd July. With starting the month of November and some effects of surprising victory of Donald Trump in US Election, the parity started to recover its losses in the last four months.

The depreciation following the US presidential election is expected to add speed to inflation over import prices over the coming months, but the extent and speed of the pass through between exchange rates and inflation are controversial. It is doubtful that the pressure on energy and food prices and discounts on inflation will be compensated by the rise in rates. The most significant development of the Asian session was the inflation report from Japan. The Bank of Japan BoJ has been trying to raise inflation by aggressive relaxation policy that has been going on for almost four years, and the figures announced at night are not very successful so far.

When we look at the first 2017 forecasts about EUR/JPY parity on the global forex market, the positive atmosphere can continue for a few weeks period on the parity. The support level will be 120.00 and the resistance level will be 128.00 for the first weeks of new year.

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