Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Import Price Index for the third quarter increased 5.4% quarterly, and the Australian Export Price Index increased 6.3% quarterly. Forex traders can compare this to the Australian Import Price Index for the second quarter, which increased 1.9% quarterly, and the Australian Export Price Index, which increased 13.2% quarterly.
Foreign Buying of Japanese Bonds for the period ending October 23rd was reported at -¥604.5B, and Foreigners Buying of Japanese Stocks was reported at ¥229.7B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending October 16th, reported at ¥1,225.4B, and to Foreigners Buying of Japanese Stocks, reported at ¥958.3B. Japanese Retail Sales for September increased 2.7% monthly and decreased 0.6% annualized. Forex traders can compare this to Japanese Retail Trade for August, which decreased 4.0% monthly and 3.2% annualized.
The Bank of Japan decided to keep interest rates at -0.10%. Forex traders can compare this to the previous Bank of Japan interest rate decision where interest rates remained unchanged at -0.10%.
The forecast for the AUD/JPY turned bearish after price action failed to maintain its uptrend. Traders should expect a rise in volatility and remain patient as bulls and bears battle for control at resistance. The Kijun-sen suggests more short-term upside potential, but the Tenkan-sen and the Ichimoku Kinko Hyo Cloud show signs of stagnation. Bearish pressures increased after the CCI decelerated out of extreme overbought territory and moved below 100. It has plenty of downside potential ahead, with bearish momentum on the rise. Will bears force the AUD/JPY lower until it can challenge 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 84.700 to 85.900 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 82.250
- Take Profit Zone: 81.550 – 82.300
- Stop Loss Level: 86.300
Should price action for the AUD/JPY breakout above 85.900, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 86.300
- Take Profit Zone: 87.100 – 88.000
- Stop Loss Level: 85.900
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