Here are the key factors to keep in mind today for Euro trades:
- Euro Trade Balance: The Eurozone posted a better than expected trade surplus in December. Economists expected the trade surplus to come in at €19.0 billion which would have been a slowdown from November’s upward revised trade surplus of €21.6 billion. The trade surplus rose to €23.3 billion which boosted the Euro. Despite economic uncertainty and weaker reports released during the period the Eurozone managed to increase its trade surplus which is an encouraging sign.
- Eurogroup Meeting: The stand-off between Greece and its borrowers led by Germany continues to weigh on the Euro and forex traders as a positive outcome will rally the Euro while a prolonged stalemate could invite a sell-off. Today’s meeting will move the Euro.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Fourth-Quarter GDP: Japan exited its recession, but at a much slower pace than economists expected. GDP rose only 0.6% in the fourth-quarter and 2.2% year-over-year. Economists expected an increase of 0.9% and 3.7%. The third-quarter saw a revision higher and now shows a contraction of 0.6% and 2.3%. Business Spending rose only 0.1% which is a big disappointment while Private Consumption rose 0.3%.
- Japanese Industrial Production: Industrial production rose 0.8% in December and 0.1% year-over-year. This was the final report for December and showed slower growth than the initially reported increase of 1.0% and 0.3%. Forex traders should be cautious with the Japanese Yen.
Should price action for the EURJPY remain inside the, or breakout above the 135.000 to 136.000 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 135.300
- Take Profit Zone: 144.900 – 147.000
- Stop Loss Level: 133.300
Should price action for the EURJPY breakdown below 135.000 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 134.500
- Take Profit Zone: 129.800 – 130.800
- Stop Loss Level: 136.000
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
