As the protests in Hong Kong escalate and China assembled the People’s Armed Policy on the outskirts of Shenzhen, bordering Hong Kong, forex traders continued to flock to safe haven currencies such as the Japanese Yen. Japanese economic data released during the Asian trading session showed further signs of deflationary pressures and a struggling domestic economy. With the Bank of Japan alerting the markets that it won’t allow the Japanese Yen to strengthen much further, is now the time to but the EURJPY? This morning’s fundamental analysis will explore the options to the upside as well as to the downside.

This morning’s European trading session will focus on the key German ZEW Survey where economists anticipate a weaker reading across the board will all sub-components expected in negative territory. Forex traders have already priced in the ECB’s dovish tone and The EURJPY just closed a trading gap from April 24th 2017, will a short-covering rally follow? Which central bank is willing to intervene more, the ECB or the Bank of Japan? Follow the PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders!