Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Services Index for October came in at 47.7. Forex traders can compare this to the Australian AiG Services Index for September, reported at 48.0.
Australian Westpac Consumer Confidence for November dropped 6.9% monthly to 78.0. Forex traders can compare this to Australian Westpac Consumer Confidence for October, which decreased 0.9% monthly to 83.7.
Australian NAB Business Conditions for October came in at 22, and Australian NAB Business Confidence was at 0. Forex traders can compare this to NAB Business Conditions for September, reported at 25, and Australian NAB Business Confidence at 5.
Japanese Household Spending for September rose 1.8% monthly and 2.3% annualized. Economists predicted an increase of 1.7% and 2.7%. Forex traders can compare this to Japanese Household Spending for August, which contracted 1.7% monthly and which surged 5.1% annualized.
Japanese Average Cash Earnings for September increased by 2.1% annualized and Japanese Overtime Pay by 6.7% annualized. Forex traders can compare this to Japanese Average Cash Earnings for August, which rose 1.7% annualized, and to Japanese Overtime Pay, which increased by 4.3% annualized. The Overall Wage Income for Employees for September expanded by 2.1% annualized. Economists predicted an increase of 1.7%. Forex traders can compare this to the Overall Wage Income for Employees for August, which rose 1.7% annualized.
Japanese Foreign Reserves for October came in at $1,194.6B. Forex traders can compare this to Japanese Foreign Reserves for September, reported at $1,238.1B.
The Preliminary Japanese Leading Index for September came in at 97.4, and the Preliminary Japanese Coincident Index was 101.1. Economists predicted a figure of 88.6 and 79.0. Forex traders can compare this to the Japanese Leading Index for August, reported at 101.3, and to the Japanese Coincident Index at 101.8.
The forecast for the AUF/JPY turned bearish in the short term after this currency pair advanced into its horizontal resistance area, reinforced by its sideways trending Ichimoku Kinko Hyo Cloud. The flat Kijun-sen and Tenkan-sen confirm the absence of bullish momentum, supporting a correction. Japanese Yen traders must consider potential Forex interventions by the Bank of Japan, which intervened at least three times last month. Traders should also monitor the CCI after recording three lower highs, which has plenty of downside potential. Can bears capitalize on the recent weakness in upside pressure and force 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 94.250 to 95.100 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 94.600
- Take Profit Zone: 90.800 – 91.450
- Stop Loss Level: 95.600
Should price action for the AUD/JPY breakout above 95.100, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 95.600
- Take Profit Zone: 96.400 – 97.000
- Stop Loss Level: 83.150
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