Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Final Australian Markit Services PMI for December was reported at 57.0. Forex traders can compare this to the Australian Markit Services PMI for November, reported at 55.1. The Final Australian Markit Composite PMI for December was reported at 55.6. Forex traders can compare this to the Australian Markit Composite PMI for November, reported at 54.9.

The Final Japanese Jibun Bank Services PMI for December was reported at 47.7, and the Final Japanese Jibun Bank Composite PMI at 48.5. Economists predicted a figure of 47.2 and 48.1. Forex traders can compare this to the Japanese Jibun Bank Services PMI for November, reported at 47.8, and to the Japanese Jibun Bank Composite PMI, reported at 48.1. Japanese Consumer Confidence for December was reported at 31.8. Forex traders can compare this to Japanese Consumer Confidence for November, reported at 33.7.

The forecast for the AUD/JPY remains bearish. Relations between Australia and China remain negative, and the new Covid-19 mutation in South Africa appears to render antibody medicine useless, bringing into question the current vaccines. It became the dominant strain in South Africa and Brazil. While the Kijun-sen and Tenkan-sen move higher, the disconnect to its Ichimoku Kinko Hyo Cloud suggests a correction. The CCI remains in extreme overbought territory. Will bears force a sell-off in the AUD/JPY into its next 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 79.700 to 80.300 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 79.850
• Take Profit Zone: 76.100 – 76.550
• Stop Loss Level: 80.700

Should price action for the AUD/JPY breakout above 80.300 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 80.700
• Take Profit Zone: 81.700 – 82.100
• Stop Loss Level: 80.300

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