Source: PaxForex Premium Analytics Portal, Fundamental Insight
Chinese Forex Reserves for March stood at $3.246T. Economists predicted a figure of $3.210T. Forex traders can compare this to Chinese Forex Reserves for February, which were reported at $3.226T.
Japanese Average Cash Earnings for February increased by 1.8% annualized, and Japanese Overtime Pay decreased by 1.0% annualized. Forex traders can compare this to Japanese Average Cash Earnings for January, which rose by 2.0% annualized, and Japanese Overtime Pay, which expanded by 0.4% annualized. The Overall Wage Income for Employees for February rose by 1.8% annualized. Economists predicted an increase of 1.8%. Forex traders can compare this to the Overall Wage Income for Employees for January, which increased by 2.0% annualized.
The Preliminary Japanese Current Account Balance for February came in at ¥2.644T and the Preliminary Japanese Adjusted Current Account Balance at ¥1.370T. Economists predicted a reading of ¥3.112T and ¥1.990T. Forex traders can compare this to the Japanese Current Account Balance for January, reported at ¥0.438T, and the Japanese Adjusted Current Account Balance at ¥2.750T.
The Japanese Eco Watchers Survey Current Index for March came in at 49.8, and the Japanese Eco Watchers Survey Outlook Index at 51.2. Economists predicted a figure of 51.6 and 52.2. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for February, reported at 51.3, and the Japanese Eco Watchers Survey Outlook Index at 53.0.
Australian Home Loans for February rose 1.6% monthly, and Investment Lending for Homes increased 1.2% monthly. Forex traders can compare this to Australian Home Loans for January, which dropped by 0.9% monthly, and Investment Lending for Homes, which decreased by 0.8% monthly.
The forecast for the AUD/JPY is cautiously bearish, with the risk of intervention by the Bank of Japan creating downside pressure and increasing the potential for short-term volatility. The Tenkan-sen and the Kijun-sen have flatlined with price action trading above both, while the risk remains to the downside. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are flat, confirming a standoff between bulls and bears. Traders should also monitor the CCI after it recorded a lower high in extreme overbought territory. A sustained breakdown below 100 could trigger the expected correction in this currency pair. Can bears regain control over the AUD/JPY and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/JPY remain inside the or breakdown below the 99.650 to 100.150 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 99.950
- Take Profit Zone: 97.300 – 97.850
- Stop Loss Level: 100.500
Should price action for the AUD/JPY breakout above 100.150, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Lon Position
- Entry Level: Long Position @ 100.500
- Take Profit Zone: 101.000 – 101.400
- Stop Loss Level: 100.150
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