Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Westpac Consumer Confidence for July decreased 1.1% monthly to 82.7. Forex traders can compare this to Australian Westpac Consumer Confidence for June, which rose by 1.7% monthly to 83.6.
Australian NAB Business Conditions for June came in at 4, and Australian NAB Business Confidence at 4. Forex traders can compare this to NAB Business Conditions for May, reported at 6, and Australian NAB Business Confidence at -2.
Japanese Money Stock M2 for June increased by 1.5% annualized, and Japanese M3 Money Supply came in at ¥2,168.1T. Forex traders can compare this to Japanese Money Stock M2 for May, which rose by 1.9% annualized, and Japanese M3 Money Supply, reported at ¥2,169.1T.
Japanese Preliminary Machine Tool Orders for June surged by 9.7% annualized. Forex traders can compare this to Japanese Machine Tool Orders for May, which rose by 4.2% annualized.
The forecast for the AUD/JPY remains bearish, partially driven by intervention fear by the Bank of Japan amid rising commentary that the weak Japanese Yen has a negative economic impact on companies and consumers. Short-term volatility could increase with the Tenkan-sen moving higher and the Kijun-sen flat. The Ichimoku Kinko Hyo Cloud adds to volatility potential, with the Senkou Span A drifting higher and the Senkou Span B flat. Traders should also monitor the CCI following a breakdown from extreme overbought territory after a negative divergence has formed over the past three weeks. This technical indicator has plenty of downside potential to lead price action lower. Can bears maintain control over the AUD/JPY and force this currency pair 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 108.150 to 108.750 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 108.450
- Take Profit Zone: 105.100 – 105.850
- Stop Loss Level: 109.150
Should price action for the AUD/JPY break out above 108.750, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 109.150
- Take Profit Zone: 109.750 – 110.000
- Stop Loss Level: 108.750
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
