Source: PaxForex Premium Analytics Portal, Fundamental Insight

Australian HIA New Home Sales for October decreased by 1.3% monthly. Forex traders can compare this to Australian HIA New Home Sales for September, which increased by 3.8% monthly. The Australian Wage Price Index for the third quarter increased by 0.1% quarterly and by 1.4% annualized. Economists predicted an increase of 0.2% quarterly and 1.5% annualized. Forex traders can compare this to the Australian Wage Price Index for the second quarter, which increased by 0.2% quarterly and by 1.8% annualized.

The Japanese Trade Balance for October was reported at ¥872.9B. Economists predicted a figure of ¥250.0B. Forex traders can compare this to the Japanese Trade Balance for September, reported at ¥687.8B. The Japanese Adjusted Trade Balance for October was reported at ¥0.31T. Economists predicted a figure of ¥0.11T. Forex traders can compare this to the Japanese Adjusted Trade Balance for September, reported at ¥0.44T. Exports for October decreased by 0.2% annualized, and Imports decreased by 13.2% annualized. Economists predicted a decrease of 4.5% and 9.0%. Forex traders can compare this to Exports for September, which decreased by 4.9% annualized, and to Imports, which decreased by 17.4% annualized.

The forecast for the AUD/JPY remains bearish after this currency pair moved into its Ichimoku Kinko Hyo Cloud and below its ascending Tenkan-sen. Safe-haven demand keeps the Japanese Yen supported, expected to push price action through its flatlining Kijun-sen and into its next horizontal support area. The CCI moved out of extreme overbought territory, with plenty of downside potential ahead. Can bears keep the sell-off alive? 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 75.700 to 76.150 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 75.900
• Take Profit Zone: 73.100 – 73.600
• Stop Loss Level: 76.550

Should price action for the AUD/JPY breakout above 76.150 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 76.550
• Take Profit Zone: 77.100 – 77.550
• Stop Loss Level: 76.150

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