Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Jobless Rate for June was reported at 2.9%, and the Job-to-Applicant Ratio at 1.13. Economists predicted a figure of 3.0% and 1.10. Forex traders can compare this to the Japanese Jobless Rate for May, reported at 3.0%, and to the Job-to-Applicant Ratio, reported at 1.09.
Preliminary Japanese Industrial Production for June increased 6.2% monthly and 22.6% annualized. Forex traders can compare this to Japanese Industrial Production for May, which decreased 6.5% monthly and increased 21.1% annualized. Japanese Retail Sales for June increased 0.1% annualized. Economists predicted an increase of 0.2%. Forex traders can compare this to Japanese Retail Trade for May, which increased 8.2% annualized.
The Australian PPI for the second quarter increased 0.7% quarterly and 2.2% annualized. Forex traders can compare this to the Australian PPI for the first quarter, which increased 0.4% quarterly and 0.2% annualized. Australian Private Sector Credit for June increased 0.9% monthly and 3.1% annualized. Forex traders can compare this to Australian Private Sector Credit for May, which increased 0.5% monthly and 1.9% annualized. Australian Housing Credit for June increased 0.7% monthly. Forex traders can compare this to Australian Housing Credit for May, which increased 0.6% monthly.
Japanese Housing Starts for June increased 7.4% annualized and Construction Orders by 32.3% annualized. Forex traders can compare this to Japanese Housing Starts for May, which increased 9.9% annualized, and to Construction Orders, which increased 7.4% annualized.
The forecast for the AUD/JPY remains bearish as global economic indicators point towards weaker than expected performance. Traders should expect more volatile trading after the Tenkan-sen, and the Kijun-sen, turned sideways, with the Ichimoku Kinko Hyo Cloud extending its descend. The CCI moved out of extreme oversold territory with signs of a reversal and more downside potential. Can bears force 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 80.600 to 81.350 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 80.850
- Take Profit Zone: 77.450 – 78.100
- Stop Loss Level: 81.700
Should price action for the AUD/JPY breakout above 81.350, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 81.700
- Take Profit Zone: 82.300 – 82.800
- Stop Loss Level: 81.350
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