Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Trade Balance for March came in at -¥754.5B, and the Japanese Adjusted Trade Balance at -¥1.21T. Economists predicted a reading of -¥1,294.8B and -¥1.78T. Forex traders can compare this to the Japanese Trade Balance for February, reported at -¥898.1B, and the Japanese Adjusted Trade Balance at -¥1.25T. Exports for March rose by 4.3% annualized and Imports by 7.3% annualized. Economists predicted a rise of 2.6% and 11.4%. Forex traders can compare this to Exports for February, which increased by 6.5% annualized, and Imports which rose by 8.3% annualized.
Foreign Buying of Japanese Bonds for the period ending April 15th came in at ¥500.2B, and Foreigners Buying of Japanese Stocks at ¥1,876.4B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending April 8th, reported at -¥788.7B, and to Foreigners Buying of Japanese Stocks at ¥2,368.9B.
The Japanese Tertiary Industry Index for February rose 0.7% monthly. Economists predicted an increase of 0.4% monthly. Forex traders can compare this to the Japanese Tertiary Industry Index for January, which rose 0.7% monthly.
The German PPI for March dropped by 2.6% monthly and increased by 7.5% annualized. Economists predicted a decrease of 0.5% and a rise of 9.5%. Forex traders can compare this to the German PPI for February, which contracted by 0.3% monthly and surged by 15.8% annualized.
The French Business Survey for March is predicted at 103. Forex traders can compare this to the French Business Survey for February, reported at 104.
The Spanish Trade Balance for March is predicted at -€4.40B. Forex traders can compare this to the Spanish Trade Balance for February, reported at -€3.96B.
Advanced Eurozone Consumer Confidence for April is predicted at -18.5. Forex traders can compare this to the previous Eurozone Consumer Confidence for March, reported at -19.2.
The forecast for the EUR/JPY turned bearish after this currency pair reached a fresh 2023 high, while bullish momentum decreased. The Ichimoku Kinko Hyo Cloud has failed to confirm the upside, and the Kijun-sen has flatlined. Volatility could rise in the short term as the Tenkan-sen maintains its upward move, and bulls will battle bears for control over price action at the horizontal resistance area. Traders should also monitor the CCI after a negative divergence has formed in extreme overbought territory, followed by a breakdown below 100. A continued contraction in this technical indicator should offer bears the upper hand. Can bears capitalize on the recent weakness in the USD/JPY and force price action into its 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 147.150 to 148.000 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 147.600
- Take Profit Zone: 144.650 – 145.550
- Stop Loss Level: 148.400
Should price action for the EURJPY breakout above 148.000, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 148.400
- Take Profit Zone: 149.000 – 149.900
- Stop Loss Level: 148.000
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