Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Preliminary Japanese Jibun Bank Manufacturing PMI for August was reported at 52.4, the Preliminary Japanese Jibun Bank Services PMI at 43.5, and the Preliminary Japanese Jibun Bank Composite PMI at 45.9. Forex traders can compare this to the Japanese Jibun Bank Manufacturing PMI for July, reported at 53.0, the Japanese Jibun Bank Services PMI reported at 46.4, and the Japanese Jibun Bank Composite PMI reported at 48.8.

The Preliminary French Markit Manufacturing PMI for August is predicted at 57.3, the Preliminary French Markit Services PMI at 57.0, and the Preliminary French Markit Composite PMI at 56.5. Forex traders can compare this to the French Markit Manufacturing PMI for July, reported at 58.0, the French Markit Services PMI reported at 56.8, and the French Markit Composite PMI reported at 56.6.

The Preliminary German Markit Manufacturing PMI for August is predicted at 65.0, the Preliminary German Markit Services PMI at 61.0, and the Preliminary German Markit Composite PMI at 62.2. Forex traders can compare this to the German Markit Manufacturing PMI for July, reported at 65.9, the German Markit Services PMI reported at 61.8, and the German Markit Composite PMI reported at 62.4.

The Preliminary Eurozone Markit Manufacturing PMI for August is predicted at 62.0, the Preliminary Eurozone Markit Services PMI at 59.8, and the Preliminary Eurozone Markit Composite PMI at 59.7. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for July, reported at 62.8, the Eurozone Markit Services PMI reported at 59.8, and the Eurozone Markit Composite PMI reported at 60.2. 
Advanced Eurozone Consumer Confidence for August is predicted at -5.0. Forex traders can compare this to the previous Eurozone Consumer Confidence for July, reported at -4.4.

The forecast for the EUR/JPY remains bearish despite the massive sell-off, as inflationary pressures, supply chain disruptions, and the delta variant of Covid-19 keep downside pressure on the global economy. While the Tenkan-sen and the Kijun-sen turned sideways, the Ichimoku Kinko Hyo Cloud applies bearish pressures. Traders should expect a rise in volatility before the sell-off resumes. The CCI moved out of extreme oversold territory, but a reversal is likely, with plenty of downside potential ahead. Can bears remain in control over the EUR/JPY and force more selling? 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 128.250 to 129.250 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 128.800
• Take Profit Zone: 126.050 – 126.700
• Stop Loss Level: 129.800

Should price action for the EURJPY breakout above 129.250, PaxForex recommends the following trade set-up is recommended:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 129.800
• Take Profit Zone: 131.200 – 131.850
• Stop Loss Level: 129.250

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