Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Australian Employment Change for April came in at 4.0K and the Unemployment Rate at 3.9%. Economists predicted a figure of 30.0K and 3.9%. Forex traders can compare this to the Australian Employment Change for March, reported at 17.9K, and the Unemployment Rate reported at 4.0%. 92.4K Full-Time Positions were created, and 88.4K Part-Time Positions were lost in April. Forex traders can compare this to the addition of 20.0K Full-Time Positions and 0.4K Part-Time Positions reported in March. The Labor Force Participation Rate for April came in at 66.3%. Economists predicted a reading of 66.4%. Forex traders can compare this to the Labor Force Participation Rate for March, reported at 66.4%.

Japanese Machine Orders for March increased by 7.1% monthly and 7.6% annualized. Economists predicted a rise of 3.7% and 3.7%. Forex traders can compare this to Japanese Machine Orders for February, which plunged 9.8% monthly and rose 4.3% annualized.

Foreign Buying of Japanese Bonds for the period ending May 14th came in at ¥370.8B, and Foreigners Buying of Japanese Stocks at -¥342.9B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending May 7th, reported at -¥820.3B, and to Foreigners Buying of Japanese Stocks at ¥78.8B.

The Japanese Trade Balance for April came in at -¥839.2B, and the Japanese Adjusted Trade Balance at -¥1.67T. Forex traders can compare this to the Japanese Trade Balance for March, reported at -¥414.1B, and the Japanese Adjusted Trade Balance at -¥1.02T. Exports for April increased by 12.5% annualized, and Imports surged by 28.2% annualized. Economists predicted a rise of 13.8% and 35.0%. Forex traders can compare this to Exports for March, which rose 14.7% annualized, and Imports, which increased 31.2% annualized.

The forecast for the AUD/JPY remains bearish after this currency pair corrected into its flat Ichimoku Kinko Hyo Cloud, which shows signs of narrowing. Adding to downside pressures is the descending Tenkan-sen, and the Kijun-sen confirms the absence of short-term bullishness with its sideways trend. Traders should minor the CCI for a false breakout reversal. This technical indicator recorded a lower low in extreme oversold territory before moving above -100, where it set a lower high. A breakdown below -100 is likely, which can trigger a renewed sell-off. Can bears maintain control over the AUD/JPY and force price action 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 89.700 to 90.850 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 90.350
• Take Profit Zone: 83.800 – 85.150
• Stop Loss Level: 92.350

Should price action for the AUD/JPY breakout above 90.850, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 92.350
• Take Profit Zone: 94.000 – 94.700
• Stop Loss Level: 90.850

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