Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Consumer Inflation Expectations for January increased 4.4% annualized. Forex traders can compare this to Australian Consumer Inflation Expectations for December, which rose 4.8% annualized.
The Australian Employment Change for December was reported at 64.8K and the Unemployment Rate at 4.2%. Economists predicted a figure of 43.3K and 4.5%. Forex traders can compare this to the Australian Employment Change for November, reported at 366.1K, and the Unemployment Rate reported at 4.6%. 41.5K Full-Time Positions, and 23.3K Part-Time Positions, were created in December. Forex traders can compare this to the creation of 128.3K Full-Time Positions and 237.8K Part-Time Positions, reported in November. The Labor Force Participation Rate for December was reported at 66.1%. Economists predicted a reading of 66.2%. Forex traders can compare this to the Labor Force Participation Rate for November, reported at 66.1%.
The Chinese 1-Year Loan Prime Rate was reported at 3.70%, and the Chinese 5-Year Loan Prime Rate was reported at 4.60%. Economists predicted a figure of 4.05% and 4.75%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate reported at 3.80% and the Chinese 5-Year Loan Prime Rate, reported at 4.65%.
Foreign Buying of Japanese Bonds for the period ending January 15th was reported at ¥928.2B, and Foreigners Buying of Japanese Stocks was reported at -¥13.0B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending January 8th, reported at ¥620.4B, and Foreigners Buying of Japanese Stocks, reported at ¥780.6B.
The Japanese Trade Balance for December was reported at -¥582.4B, and the Japanese Adjusted Trade Balance at -¥0.44T. Forex traders can compare this to the Japanese Trade Balance for November, reported at -¥955.6B, and the Japanese Adjusted Trade reported at -¥0.47T. Exports for December increased 17.5% annualized, and Imports increased 41.1% annualized. Economists predicted an increase of 16.0% and 42.8%. Forex traders can compare this to Exports for November, which increased 20.5% annualized, and Imports which increased 43.8% annualized.
The forecast for the AUD/JPY remains bearish, and the downtrend may accelerate following its pause after testing its Ichimoku Kinko Hyo Cloud, which shows a pending bearish crossover. After the Kijun-sen flatlined, suggesting the absence of short-term bullishness, the Tenkan-sen has continued a gradual descent. Traders should monitor both for a bearish crossover. The CCI moved out of extreme oversold territory but is vulnerable to a false breakout. A retreat below -100 can jump-start an accelerated move to the downside. Can bears maintain control over the AUD/JPY and pressure 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 82.250 to 83.150 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 82.750
- Take Profit Zone: 79.950 – 80.600
- Stop Loss Level: 83.650
Should price action for the AUD/JPY breakout above 83.150, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 83.650
- Take Profit Zone: 84.350 – 84.600
- Stop Loss Level: 83.150
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