Source: PaxForex Premium Analytics Portal, Fundamental Insight

Japanese Retail Sales for October increased 1.1% monthly and 0.9% annualized. Economists predicted a decrease of 1.6% monthly and an increase of 1.1% annualized. Forex traders can compare this to Japanese Retail Sales for September, which increased 2.8% monthly and decreased 0.5% annualized.

Australian Business Inventories for the third quarter decreased 1.9% quarterly, and Australian Company Gross Operating Profits increased 4.0% quarterly. Economists predicted a decrease of 0.6% and an increase of 3.0%. Forex traders can compare this to Australian Inventories for the second quarter, which increased 0.3% quarterly, and Australian Company Operating Profits, which increased 7.1% quarterly. Company Pre-Tax Profits for the third quarter decreased 0.4% quarterly. Forex traders can compare this to Company Pre-Tax Profits for the second quarter, which increased 17.4% quarterly.

The forecast for the AUD/JPY turned bullish following a massive sell-off that plunged this currency pair below its flatlining Ichimoku Kinko Hyo Cloud. Validating to the short-term bullish outlook is the latest D1 candlestick, which formed a harami hammer. The Kijun-sen also turned sideways, confirming the lack of short-term bearish pressures, but the Tenkan-sen maintains its downtrend. Traders should monitor the CCI after it dropped deep into extreme oversold territory from where its shows early signs of a reversal. A breakout above -100 will deliver a final buy signal. Will bulls gather enough strength to force the AUD/JPY into its horizontal resistance 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 breakout above the 80.450 to 81.800 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 81.050
• Take Profit Zone: 84.350 – 85.200
• Stop Loss Level: 79.950

Should price action for the AUD/JPY breakdown below 80.450, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 79.950
• Take Profit Zone: 77.900 – 78.800
• Stop Loss Level: 80.450

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.