Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Preliminary Japanese Jibun Bank Manufacturing PMI for April came in at 49.9, the Preliminary Japanese Jibun Bank Services PMI at 54.6, and the Preliminary Japanese Jibun Bank Composite PMI at 52.6. Forex traders can compare this to the Japanese Jibun Bank Manufacturing PMI for March, reported at 48.2, the Japanese Jibun Bank Services PMI at 54.1, and the Japanese Jibun Bank Composite PMI at 51.7.

The Preliminary French HCOB Manufacturing PMI for April is predicted at 46.9, the Preliminary French HCOB Services PMI at 48.9, and the Preliminary French HCOB Composite PMI at 48.7. Forex traders can compare this to the French HCOB Manufacturing PMI for March, reported at 46.2, the French HCOB Services PMI at 48.3, and the French HCOB Composite PMI at 48.3.

The Preliminary German HCOB Manufacturing PMI for April is predicted at 42.8, the Preliminary German HCOB Services PMI at 50.6, and the Preliminary German HCOB Composite PMI at 48.6. Forex traders can compare this to the German HCOB Manufacturing PMI for March, reported at 41.9, the German HCOB Services PMI at 50.1, and the German HCOB Composite PMI at 47.7.

The Preliminary Eurozone HCOB Manufacturing PMI for April is predicted at 46.5, the Preliminary Eurozone HCOB Services PMI at 51.8, and the Preliminary Eurozone HCOB Composite PMI at 50.8. Forex traders can compare this to the Eurozone HCOB Manufacturing PMI for March, reported at 46.1, the Eurozone HCOB Services PMI at 51.5, and the Eurozone HCOB Composite PMI at 50.3.

The Bank of Japan and the Bank of Korea have discussed joint intervention in the Forex market to stem aggressive speculation in their respective currencies. While the timing and level are unclear, traders should brace for interference by both central banks. Some speculate that the Bank of Japan and the Bank of Korea may enlist assistance from other central banks that share their opinion. It places ongoing downside pressure on the Japanese Yen and the Korean Won.

The forecast for the EUR/JPY turned bearish, with this currency pair losing upside momentum at its horizontal resistance area. The descending Tenkan-sen is confirming its bearish crossover below the ascending KIjun-sen. The Ichimoku Kinko Hyo Cloud has flatlined and could start to narrow. Traders should also monitor the CCI following its breakdown from extreme overbought territory. Can bears regain control over the EUR/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 164.400 to 165.100 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 164.650
• Take Profit Zone: 160.850 – 161.800
• Stop Loss Level: 165.400

Should price action for the EURJPY breakout above 165.100, PaxForex recommends the following trade set-up is recommended:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 165.400
• Take Profit Zone: 166.000 – 166.500
• Stop Loss Level: 165.100

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