The Japanese Yen sold-off during the Asian trading session as forex traders booked floating trading profits and with the Bank of Japan debating how and when to weaken its currency in order to assists its export dependent economy. The US-China trade war escalated further, but Singapore industrial production for July surprised to the upside. The EURJPY was able to bounce off of a strong support level, but is this just a temporary advance or will forex traders push this currency pair further to the upside? Follow the PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders.
Forex traders will pay close attention to the details of the German IFO report which will be released during the European morning trading session. Economists anticipate that all three sub-components decreased further. After the German economy contracted in the second-quarter, will it slip into a recession during the third-quarter? What impact will this have on the Euro? Last week’s PMI data surprised to the upside, but the global economy continued to slow down. Is now the time to buy the EURJPY or should forex traders expect more downside? Today’s fundamental analysis will cover price action in both directions.
Here is the key factor to keep in mind today for Euro trades:
- German IFO: The German IFO Business Climate Index for August is predicted at 95.0. Forex traders can compare this to the German IFO Business Climate Index for July which was reported at 95.7. The German IFO Current Assessment Index for August is predicted at 98.8. Forex traders can compare this to the German IFO Current Assessment Index for July which was reported at 99.4. The German IFO Expectations Index for August is predicted at 91.8. Forex traders can compare this to the German IFO Expectations Index for July which was reported at 92.2.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Leading Index and Japanese Coincident Index: The Final Japanese Leading Index for June was reported at 93.3 and the Final Japanese Coincident Index was reported at 100.4. Forex traders can compare this to the previous Japanese Leading Index for June which was reported at 93.3 and to the previous Japanese Coincident Index which was reported at 100.4.
- Singapore Industrial Production: Singapore Industrial Production for July increased by 3.6% monthly and decreased by 0.4% annualized. Economists predicted a decrease of 1.8% and of 4.9%. Forex traders can compare this to Singapore Industrial Production for June which decreased by 0.3% monthly and by 8.1% annualized.
Should price action for the EURJPY remain inside the or breakout above the 117.000 to 117.750 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 117.400
- Take Profit Zone: 121.350 – 122.300
- Stop Loss Level: 116.550
Should price action for the EURJPY breakdown below 116.550 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 116.250
- Take Profit Zone: 113.700 – 114.150
- Stop Loss Level: 117.000
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