Source: PaxForex Premium Analytics Portal, Fundamental Insight
Foreign Buying of Japanese Bonds for the period ending December 2nd came in at ¥64.5B, and Foreigners Buying of Japanese Stocks at -¥358.3B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending November 25th, reported at -¥84.3B, and to Foreigners Buying of Japanese Stocks at ¥4.5B.
Japanese Foreign Reserves for November came in at $1,269.7B. Forex traders can compare this to Japanese Foreign Reserves for October, reported at $1,238.0B.
The Preliminary Japanese Leading Index for October came in at 108.7, and the Preliminary Japanese Coincident Index at 115.9. Forex traders can compare this to the Japanese Leading Index for September, reported at 109.3, and to the Japanese Coincident Index at 115.7.
Final Australian Building Approvals for October rose by 7.5% monthly and dropped by 6.1% annualized. Economists predicted a rise of 7.5% and a decrease of 6.1%. Forex traders can compare this to Australian Building Approvals for September, which contracted by 4.6% monthly and plunged by 20.6% annualized. Final Private House Approvals for October rose by 2.2% monthly. Forex traders can compare this to Private House Approvals for September, which decreased by 4.7% monthly.
The Australian Trade Balance for October came in at A$7,129M. Economists predicted a figure of A$7.500M. Forex traders can compare this to the Australian Trade Balance for September, reported at A$6,184M. Exports for October rose by 0.4% monthly, and imports dropped by 1.9%. Forex traders can compare this to exports for September, which contracted by 1.8%, and imports, which expanded by 8.0%.
The Chinese Trade Balance for November came in at $68.39B. Economists predicted a figure of $58.00B. Forex traders can compare this to the Chinese Trade Balance for October, reported at $56.53B. Exports for November rose by 0.5% annualized, and Imports decreased by 0.6% annualized. Economists predicted a contraction of 1.1% and an expansion of 3.3%. Forex traders can compare this to Exports for October, which contracted by 6.4% annualized, and Imports, which increased by 3.0% annualized.
The forecast for the AUD/JPY turned cautiously bullish after this currency pair corrected into its horizontal support area. Volatility should increase with a bearish crossover between the descending Tenkan-sen, and the upward drifting Kijun-sen, with a widening Ichimoku Kinko Hyo Cloud. Traders should also monitor the CCI in extreme oversold territory at unsustainable levels. A reversal and breakout by this technical indicator above -100 could kickstart a relief rally. Can bulls regain control over the AUD/JPY and push price action into its horizontal resistance 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 breakout above the 95.400 to 96.000 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 95.650
- Take Profit Zone: 97.950 – 98.600
- Stop Loss Level: 95.000
Should price action for the AUD/JPY breakdown below 95.400, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 95.000
- Take Profit Zone: 93.800 – 94.300
- Stop Loss Level: 95.400
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