Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final Japanese GDP for the fourth quarter rose 0.1% quarterly and 2.4% annualized. Economists predicted a decrease of 0.1% and 0.4%. Forex traders can compare this to the Japanese GDP for the third quarter, which contracted 0.7% quarterly and 3.2% annualized. Final Private Consumption for the fourth quarter decreased by 0.3% quarterly, and Final Capital Expenditure accelerated by 2.0% quarterly. Economists predicted a drop of 0.2% and 0.1%. Forex traders can compare this to Private Consumption for the third quarter, which decreased by 0.2% quarterly, and Capital Expenditure, which contracted by 0.4% quarterly. Final External Demand for the fourth quarter increased by 0.3% quarterly. Economists predicted a rise of 0.2%. Forex traders can compare this to External Demand for the third quarter, which decreased by 0.1% quarterly. The final GDP Price Index for the fourth quarter rose 3.9% annualized. Economists predicted a rise of 3.8%. Forex traders can compare it to the GDP Price Index for the third quarter, which surged by 5.2% annualized.
Japanese Money Stock M2 for February increased by 2.5% annualized, and Japanese M3 Money Supply came in at ¥2,140.3T. Forex traders can compare this to Japanese Money Stock M2 for January, which rose by 2.5% annualized, and Japanese M3 Money Supply, reported at ¥2,134.9T.
Japanese Preliminary Machine Tool Orders for February dropped by 8.0% annualized. Forex traders can compare this to Japanese Machine Tool Orders for January, which plunged by 14.1% annualized.
Swiss SECO Consumer Confidence for February is predicted at -35. Forex traders can compare this to Swiss SECO Consumer Confidence for January, reported at -26.
Traders will start the trading week with a quiet economic calendar, which could result in a volatile trading session on the back of lower volume.
The forecast for the CHF/JPY turned cautiously bullish after this currency pair corrected into its horizontal support area. Adding to the upside momentum is the ascending Ichimoku Kinko Hyo Cloud, with the Senkou Span A and the Senkou Span B moving higher. The descending Tenkan-sen and Kijun-sen could boost short-term volatility following a bearish crossover. Traders should also monitor the CCI in extreme oversold territory. This technical indicator started to move higher, and a breakout above -100 could spark the next advance. Can bulls regain control over the CHF/JPY and pressure this currency pair into a price action reversal until it can challenge its horizontal resistance 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 breakout above the 167.000 to 168.000 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 167.550
- Take Profit Zone: 170.650 – 171.500
- Stop Loss Level: 166.350
Should price action for the CHF/JPY breakdown below 167.000, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 166.350
- Take Profit Zone: 164.750 – 166.250
- Stop Loss Level: 167.000
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