Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Average Cash Earnings for March increased by 0.6% annualized, and Japanese Overtime Pay decreased by 1.5% annualized. Forex traders can compare this to Japanese Average Cash Earnings for February, which rose by 1.4% annualized, and Japanese Overtime Pay, which contracted by 1.6% annualized. The Overall Wage Income for Employees for March rose by 0.6% annualized. Forex traders can compare this to the Overall Wage Income for Employees for February, which increased by 1.4% annualized.
Japanese Foreign Reserves for April came in at $1,279.0B. Forex traders can compare this to Japanese Foreign Reserves for March, reported at $1,290.6B.
Final Australian Building Approvals for March rose by 1.9% monthly. Forex traders can compare this to Australian Building Approvals for February, which contracted by 0.9% monthly. Final Private House Approvals for March rose by 3.8% monthly. Economists predicted an increase of 3.8%. Forex traders can compare this to Private House Approvals for February, which surged by 12.4% monthly.
The Chinese Trade Balance for April came in at $72.35B. Economists predicted a figure of $81.40B. Forex traders can compare this to the Chinese Trade Balance for March, reported at $58.55B. Exports for April increased by 1.5% annualized, and Imports surged by 8.5% annualized. Economists predicted a rise of 1.0% and 5.4%. Forex traders can compare this to Exports for March, which plunged by 7.5% annualized, and Imports, which decreased by 1.9% annualized.
The Preliminary Japanese Leading Index for March came in at 111.4, and the Preliminary Japanese Coincident Index was at 113.9. Forex traders can compare this to the Japanese Leading Index for February, reported at 112.1, and to the Japanese Coincident Index at 111.5.
The forecast for the AUD/JPY turned cautiously bearish after this currency pair advanced into its horizontal resistance area, while bullish momentum started to fade. Price action trades above its flat Kijun-sen and below its flat Tenkan-sen. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud move higher, narrowing the Ichimoku Kinko Hyo Cloud and making it vulnerable to a bearish crossover. Traders should also monitor the CCI after recording a negative divergence in extreme overbought territory, followed by a breakdown below 100. A move below zero could spark the next leg lower, as this technical indicator has plenty of downside potential. Can bears regain control over the AUD/JPY and force price action into its horizontal support area below the psychological 100 level? 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 102.000 to 102.700 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 102.300
- Take Profit Zone: 99.000 – 99.850
- Stop Loss Level: 103.000
Should price action for the AUD/JPY breakout above 102.700, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 103.000
- Take Profit Zone: 103.450 – 104.00
- Stop Loss Level: 102.700
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