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.