Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Business Inventories for the second quarter increased 0.2% quarterly, and Australian Company Gross Operating Profits increased 7.1% quarterly. Economists predicted an increase of 1.3% and 3.0%. Forex traders can compare this to Australian Inventories for the first quarter, which increased 2.4% quarterly, and Australian Company Operating Profits, which decreased 0.6% quarterly. Company Pre-Tax Profits for the second quarter increased 17.4% quarterly. Forex traders can compare this to Company Pre-Tax Profits for the first quarter, which decreased 6.0% quarterly.
Japanese Retail Sales for July increased 2.4% annualized. Economists predicted an increase of 2.1. Forex traders can compare this to Japanese Retail Trade for June, which increased by 0.1% annualized.
The forecast for the AUD/JPY remains bearish as price action nears the completion of its reversal after reaching support. The minor rally allowed the Tenkan-sen to stabilize and turn sideways, but the Kijun-sen extends its slide. Adding to the bearish outlook for this currency pair is the descending Ichimoku Kinko Hyo Cloud, together with persistent inflationary pressures. The CCI moved out of extreme oversold territory but is losing momentum with plenty of downside potential. Can bears maintain control over price action and force the AUD/JPY 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 79.750 to 80.350 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 80.150
- Take Profit Zone: 77.450 – 78.100
- Stop Loss Level: 80.850
Should price action for the AUD/JPY breakout above 80.350, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 80.700
- Take Profit Zone: 81.550 – 82.000
- Stop Loss Level: 80.350
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.