Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Current Account Balance for the fourth quarter came in at A$14.1B. Economists predicted a figure of A$6.5B. Forex traders can compare this to the Australian Current Account Balance for the third quarter, reported at -A$2.3B. Australian Net Exports of GDP for the fourth quarter rose 1.1% quarterly. Economists predicted an increase of 1.3%. Forex traders can compare this to Australian Net Exports of GDP for the third quarter, which contracted by 0.2% quarterly.
Australian Private Sector Credit for January increased by 0.3% monthly, and Housing Credit by 0.4% monthly. Forex traders can compare this to Australian Private Sector Credit for December, which rose by 0.3% monthly, and Housing Credit by 0.3% monthly.
Australian Retail Sales for January rose 1.9% monthly. Economists predicted an increase of 1.5% monthly. Forex traders can compare this to Australian Retail Sales for December, which plunged 4.0% monthly.
Preliminary Japanese Industrial Production for January dropped by 4.6% monthly and 3.1% annualized. Forex traders can compare this to Japanese Industrial Production for December, which rose 0.3% monthly and contracted 0.8% annualized.
Japanese Retail Sales for January increased by 1.9% monthly and 6.3% annualized. Forex traders can compare this to Japanese Retail Sales for December, which rose 1.1% monthly and 3.8% annualized.
Japanese Housing Starts for January increased by 6.6% annualized, and Construction Orders plunged by 14.0%. Forex traders can compare this to Japanese Housing Starts for December, which decreased by 1.7% annualized, and Construction Orders, which surged by 8.5%.
The next Bank of Japan Governor, Kazuo Ueda, vowed to extend the ultra-lose monetary policy, keeping interest rates in negative territory. It could keep downside pressure on the Japanese Yen until inflation rises across Japan, which is unlikely to manifest during the first half of 2023.
The forecast for AUD/JPY turned cautiously bullish after this currency pair stabilized above its flat Ichimoku Kinko Hyo Cloud, which completed a bullish crossover. Volatility could increase after the Tenkan-sen has flatlined while the Kijun-sen resumes its uptrend. A bullish crossover would add more upside pressure on price action. Traders should also monitor the CCI after its double breakdown from extreme overbought territory and below zero, but this technical indicator bottomed out and began a drift higher. A breakout above zero may spark the next leg higher. Can bulls regain control over the AUD/JPY and push this currency pair 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 91.300 to 92.150 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 91.600
- Take Profit Zone: 93.350 – 93.950
- Stop Loss Level: 91.100
Should price action for the AUD/JPY breakdown below 91.300, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 91.100
- Take Profit Zone: 90.150 – 90.550
- Stop Loss Level: 91.300
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
