Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Japanese GDP for the first quarter decreased by 0.1% quarterly and 0.5% annualized. Economists predicted a drop of 0.3% and 1.0%. Forex traders can compare this to the Japanese GDP for the fourth quarter, which rose 1.0% quarterly and 4.0% annualized. Final Private Consumption for the first quarter rose 0.1% quarterly, and Final Capital Expenditure dropped 0.7% quarterly. Economists predicted a flat reading of 0.0% and an increase of 0.3%. Forex traders can compare this to Private Consumption for the fourth quarter, which expanded by 2.4% quarterly, and Capital Expenditure by 0.1% quarterly. Final External Demand for the first quarter decreased 0.4% quarterly. Economists predicted a drop of 0.4%. Forex traders can compare this to External Demand for the fourth quarter, which rose 0.1% quarterly. The final GDP Price Index for the first quarter decreased 0.5% quarterly. Forex traders can compare it to the GDP Price Index for the fourth quarter, which contracted 1.3% quarterly.
The Preliminary Japanese Current Account Balance for April came in at ¥0.501T, and the Preliminary Japanese Adjusted Current Account Balance at ¥0.510T. Forex traders can compare this to the Japanese Current Account Balance for March, reported at ¥2.549T, and the Japanese Adjusted Current Account Balance at ¥1.560T.
Japanese Bank Lending for May increased 0.7% annualized. Forex traders can compare this to Japanese Bank Lending for April, which rose 0.9% annualized.
The Japanese Eco Watchers Survey Current Index for May came in at 54.0, and the Japanese Eco Watchers Survey Outlook Index at 52.5. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for April, reported at 50.4, and the Japanese Eco Watchers Survey Outlook Index at 50.3.
The Swiss Unemployment Rate for May came in at 2.1%, and the Seasonally Adjusted Unemployment Rate at 2.2%. Economists predicted a rate of 2.1% and 2.2%. Forex traders can compare this to the Swiss Unemployment Rate for April, reported at 2.3%, and the Seasonally Adjusted Unemployment Rate, reported at 2.2%.
The forecast for the CHF/JPY is slowly turning bearish after this currency pair mounted a 1,000+ pips rally. As the Ichimoku Kinko Hyo Cloud, the Kijun-sen, and the Tenkan-sen, all lagging indicators, move higher, the weight of the move higher threatens to collapse on itself. It can result in profit-taking until price action can reconnect with the Senkou Span A of its Ichimoku Kinko Hyo Cloud. A minor negative divergence formed in the CCI in extreme overbought territory, and traders should monitor this technical indicator for a breakdown below 100 and a slide into negative conditions. Can bears regain short-term control over the CHF/JPY and pressure price action 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 CHF/JPY remain inside the or breakdown below the 136.100 to 137.500 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 136.800
- Take Profit Zone: 117.550 – 117.900
- Stop Loss Level: 138.800
Should price action for the CHF/JPY breakout above 137.500, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 138.800
- Take Profit Zone: 140.000 – 141.300
- Stop Loss Level: 137.500
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