Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Consumer Inflation Expectations for January increased by 5.6% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for December, which rose 5.2% annualized.
The Australian Employment Change for December came in at -14.6K, and the Unemployment Rate at 3.5%. Economists predicted a figure of 22.5K and 3.4%. Forex traders can compare this to the Australian Employment Change for November, reported at 58.2K, and the Unemployment Rate reported at 3.5%. 17.6K Full-Time Positions were created, and 32.2K Part-Time Positions were lost in December. Forex traders can compare this to the creation of 33.2K Full-Time Positions and 25.0K Part-Time Positions, reported in November. The Labor Force Participation Rate for December came in at 66.6%. Economists predicted a reading of 66.8%. Forex traders can compare this to the Labor Force Participation Rate for November, reported at 66.8%.
The Japanese Trade Balance for December came in at -¥1,448.5B, and the Japanese Adjusted Trade Balance at -¥1.72T. Forex traders can compare this to the Japanese Trade Balance for November, reported at -¥2,027.4B, and the Japanese Adjusted Trade Balance at -¥1.78T. Exports for December surged by 11.5% annualized and Imports by 20.6% annualized. Economists predicted a rise of 10.1% and 22.4%. Forex traders can compare this to Exports for November, which rose 20.0% annualized, and Imports which sky-rocketed 30.3% annualized.
Foreign Buying of Japanese Bonds for the period ending January 14th came in at ¥1,232.1B, and Foreigners Buying of Japanese Stocks at ¥185.6B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending January 7th, reported at ¥569.5B, and to Foreigners Buying of Japanese Stocks at -¥199.2B.
The forecast for the AUD/JPY turned moderately bullish after this currency pair corrected into the upper band of its horizontal support area. Short-term volatility is expected to increase following the bearish crossover of the descending Tenkan-sen below the downward-shifting Kijun-sen. Adding to the rising bullish outlook is the Ichimoku Kinko Hyo Cloud, which shows signs of upward momentum with the Senkou Span A moving higher. Traders should monitor the CCI following its fast descent from extreme overbought territory into extreme oversold conditions. This technical indicator can drift temporarily lower but should record a higher low. A sustained breakout above -100 will deliver the final buy signal. Can bulls overpower bears and pressure the AUD/JPY 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 87.650 to 88.650 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 88.250
- Take Profit Zone: 91.350 – 92.100
- Stop Loss Level: 87.00
Should price action for the AUD/JPY breakdown below 87.650, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 87.000
- Take Profit Zone: 84.600 – 85.350
- Stop Loss Level: 87.650
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