Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Jobless Rate and Job-to-Applicant Ratio: The Japanese Jobless Rate for April was reported at 2.8%, and the Job-to-Applicant Ratio at 1.09. Economists predicted a figure of 2.7% and 1.10. Forex traders can compare this to the Japanese Jobless Rate for March, reported at 2.6%, and to the Job-to-Applicant Ratio, reported at 1.10.
The Swiss KOF Leading Indicator for May is predicted at 136.0. Forex traders can compare this to the Swiss KOF Leading Indicator for April, reported at 134.0.
The forecast for the CHF/JPY turned bearish after price action accelerated higher. Both currencies are considered safe-haven currencies and set to perform better during risk-off sessions, but the recent run-up threatened the stability of the rally. The Kijun-sen and the Tenkan-sen turned flat, suggesting a rise of volatility may follow accompanied by choppy trading. A correction into its ascending Ichimoku Kinko Hyo Cloud is likely to follow after the CCI moves out of extreme overbought territory from a lower high. Can bears step in and force the CHF/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 CHF/JPY remain inside the or breakdown below the 122.000 to 122.600 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 122.350
- Take Profit Zone: 119.750 – 120.150
- Stop Loss Level: 123.400
Should price action for the CHF/JPY breakout above 122.600, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 123.400
- Take Profit Zone: 124.400 – 125.000
- Stop Loss Level: 122.600
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