Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Bank Lending for July increased by 6.3% annualized. Forex traders can compare this to Japanese Bank Lending for June, which increased by 6.2% annualized. The Preliminary Japanese Current Account Balance for June was reported at ¥167.5B. Economists predicted a figure of ¥110.0B. Forex traders can compare this to the Japanese Current Account Balance for May, reported at ¥1,176.8B.
The Japanese Eco Watchers Survey Current Index for July was reported at 41.1, and the Japanese Eco Watchers Survey Outlook Index was reported at 36.0. Economists predicted a figure of 46.6 and 48.2. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for June, reported at 38.8 and to the Japanese Eco Watchers Survey Outlook Index, reported at 44.0.
The German ZEW Survey Current Situation Index for August is predicted at -68.8 and the German ZEW Survey Economic Sentiment Index at 58.0. Forex traders can compare this to the German ZEW Survey Current Situation Index for July, reported at -80.9, and to the German ZEW Survey Economic Sentiment Index, reported at 59.3.
The forecast for the EUR/JPY remains bearish after it failed to extend its advance. With the global Covid-19 pandemic predicted to accelerate, safe-haven demand for the Japanese Yen is likely to increase. Economic data out of Australia, Japan, and Singapore disappointed, suggesting the post-lockdown recovery is fizzling out. Price action is expected to enter a correction through the Ichimoku Kinko Hyo Cloud and into its next horizontal support area. Will bears be able to deliver a sell-off? 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 124.300 to 125.300 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 124.700
- Take Profit Zone: 119.400 – 120.250
- Stop Loss Level: 125.600
Should price action for the EURJPY breakout above 125.300 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 125.600
- Take Profit Zone: 126.300 – 126.800
- Stop Loss Level: 125.300
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