Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Bank Lending, including Trusts for March, increased by 6.3% annualized. Forex traders can compare this to Japanese Bank Lending, including Trusts for February, which increased by 6.2% annualized. The Japanese PPI for March increased by 0.7% monthly and 1.0% annualized. Economists predicted an increase of 0.4% and 0.5% annualized. Forex traders can compare this to the Japanese PPI for February, which increased by 0.6% monthly and decreased by 0.6% annualized.
Eurozone Retail Sales for February are predicted to increase by 1.5% monthly and to decrease by 5.4% annualized. Forex traders can compare this to Eurozone Retail Sales for January, which decreased by 5.9% monthly and 6.4% annualized.
The forecast for the EUR/JPY remains bearish, with this currency pair forming a top and the Kijun-sen entering a sideways drift. While the Kijun-sen extends its advance, the Ichimoku Kinko Hyo Cloud is in the initial phase of narrowing, with the Senkou Span A descending. Global inflationary pressures remain mixed but show signs of boiling higher. Excessive risk appetite threatens a violent sell-off in financial markets, especially if the Covid-19 vaccine fails to deliver the blockbuster summer markets hope for. Can bears pressure the EUR/JPY into its next horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EURJPY remain inside the or breakdown below the 129.950 to 130.600 zone, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 130.250
- Take Profit Zone: 127.000 – 127.500
- Stop Loss Level: 131.200
Should price action for the EURJPY breakout above 130.600, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 131.200
- Take Profit Zone: 132.300 – 133.100
- Stop Loss Level: 130.600
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