Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Westpac Consumer Confidence for March dropped 4.2% monthly to 96.6. Forex traders can compare this to Australian Westpac Consumer Confidence for February, which decreased 1.3% monthly to 100.8.
Final Japanese GDP for the fourth quarter increased 1.1% quarterly and 4.6% annualized. Economists predicted a rise of 1.4% and 5.6%. Forex traders can compare this to the Japanese GDP for the third quarter, which decreased 0.7% quarterly and 2.8% annualized. Final Private Consumption for the fourth quarter rose 2.4% quarterly and Final Capital Expenditure by 0.3% quarterly. Economists predicted an expansion of 2.7% and 0.7%. Forex traders can compare this to Private Consumption for the third quarter, which contracted 0.9% quarterly, and Capital Expenditure, which decreased 2.4% quarterly. Final External Demand for the fourth quarter increased 0.2% quarterly. Economists predicted a rise of 0.2%. Forex traders can compare this to External Demand for the third quarter, which rose 0.1% quarterly. The Final GDP Price Index for the fourth quarter dropped 1.3% annualized. Economists predicted a decrease of 1.3%. Forex traders can compare this to the GDP Price Index for the third quarter, which contracted 1.2% annualized.
Japanese Money Stock M2 for February increased 3.6% annualized, and Japanese M3 Money Supply came in at ¥2,019.4T. Forex traders can compare this to Japanese Money Stock M2 for January, which increased 3.6% annualized, and Japanese M3 Money Supply reported at ¥2,016.6T.
Chinese PPI for February rose 8.8% annualized, and Chinese CPI by 0.9% annualized. Economists predicted a rise of 8.7% and 0.9%. Forex traders can compare this to the Chinese PPI for January, which increased 9.1% annualized, and the Chinese CPI, which rose 0.9% annualized.
The forecast for the AUD/JPY remains bearish after this currency pair halted its massive rally. Bears have to overcome short-term bullishness as the Tenkan-sen and the Kijun-sen advance, while the Ichimoku Kinko Hyo Cloud remains flat. Price action is likely to retreat and challenge its Senkou Span A. Adding to bearish pressures is the CCI following the breakdown from extreme overbought territory after a negative divergence formed. With more downside potential, traders should monitor for a move below 0, likely to trigger more selling. Can bears pressure the AUD/JPY 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 83.800 to 84.800 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 84.300
- Take Profit Zone: 81.500 – 82.150
- Stop Loss Level: 85.150
Should price action for the AUD/JPY breakout above 84.800, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 85.150
- Take Profit Zone: 86.200 – 86.750
- Stop Loss Level: 84.800
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