Most forex traders have closed the books for 2019 and the low volume trading environment allows for existing trends to extend. Spanish retail sales for November came in better than economists expected. The EURJPY ascended to the upper band of its horizontal resistance area, but where will this currency pair go from here? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
The Japanese labor market tightened with the jobless rate unexpectedly contracting to 2.2%. Clouding the positive report was industrial production data which showed an ongoing contraction. Retail sales for November came in below expectations and indicate the slowing economy shows no signs of improvement. Will bears step in and pressure the EURJPY into a reversal or can the bulls mount another breakout? Today’s fundamental analysis will take a look at price action in both directions.
Here is the key factor to keep in mind today for Euro trades:
- Spanish Retail Sales: Spanish Retail Sales for November increased by 2.9% annualized. Forex traders can compare this to Spanish Retail Sales for October, which increased by 2.6% annualized.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Jobless Rate and Job-to-Applicant Ratio: The Japanese Jobless Rate for November was reported at 2.2% and the Job-to-Applicant Ratio at 1.57. Economists predicted a figure of 2.4% and 1.57. Forex traders can compare this to the Japanese Jobless Rate for October, which was reported at 2.4% and to the Job-to-Applicant Ratio, which was reported at 1.57.
- Japanese Industrial Production: Preliminary Japanese Industrial Production for November decreased by 0.9% monthly and by 8.1% annualized. Economists predicted a decrease of 1.1% monthly and 8.1% annualized. Forex traders can compare this to Japanese Industrial Production for October, which decreased by 4.5% monthly and by 7.7% annualized.
- Japanese Retail Trade Data: Japanese Retail Trade for November increased by 4.5% monthly and decreased by 2.1% annualized. Economists predicted an increase of 5.0% monthly and a decrease of 1.7% annualized. Forex traders can compare this to Japanese Retail Trade for October, which decreased by 14.2% monthly and by 7.0% annualized. Large Retailer’s Sales for November decreased by 1.8% monthly. Economists predicted a decrease of 1.9% monthly. Forex traders can compare this to Large Retailer’s Sales for October, which increased by 8.2% monthly.
Should price action for the EURJPY remain inside the or breakdown below the 121.800 to 122.250 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 122.000
- Take Profit Zone: 118.600 – 119.250
- Stop Loss Level: 122.750
Should price action for the EURJPY breakout above 122.250 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 122.750
- Take Profit Zone: 123.850 – 124.250
- Stop Loss Level: 122.250
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