Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Household Spending for August increased by 1.7% monthly and decreased by 6.9% annualized. Economists predicted an increase of 3.2% and a decrease of 6.9% annualized. Forex traders can compare this to Japanese Household Spending for July, which decreased by 6.5% monthly and by 7.9% annualized. Japanese Labor Cash Earnings for August decreased by 1.3% annualized, and Japanese Real Cash Earnings decreased by 1.5% annualized. Economists predicted a decrease of 1.3% and 1.5%. Forex traders can compare this to Japanese Labor Cash Earnings for July, which decreased by 1.3% annualized and to Japanese Real Cash Earnings, which decreased by 1.5% annualized.
The Canadian Employment Report for September is predicted to show the addition of 156.6K jobs and an Unemployment Rate of 9.7%. Forex traders can compare this to the Canadian Employment Report for August, which showed the addition of 245.8K jobs and an Unemployment Rate of 10.2%. The Participation Rate for September is predicted at 64.8%. Forex traders can compare this to the Participation Rate for August, reported at 64.6%.
The forecast for the CAD/JPY turned bearish after its most recent above its flatlining Tenkan-sen and Kijun-sen. The CCI is also in extreme overbought territory, limiting the short-term upside in this currency pair, with the downward sloping Ichimoku Kinko Hyo Cloud adding strong resistance. Will today’s Canadian employment report allow bears to force price action into its horizontal support area and a new 2020 low? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the CAD/JPY remain inside the or breakdown below the 80.000 to 80.750 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 80.350
- Take Profit Zone: 76.250 – 77.150
- Stop Loss Level: 81.200
Should price action for the CAD/JPY breakout above 80.750 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 81.200
- Take Profit Zone: 82.000 – 82.700
- Stop Loss Level: 80.750
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