Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Machine Orders for October rose 0.7% monthly and decreased 2.2% annualized. Economists predicted a contraction of 0.5% and 5.1%. Forex traders can compare this to Japanese Machine Orders for September, which increased by 1.4% monthly and dropped by 2.2% annualized.
Foreign Buying of Japanese Bonds for the period ending December 9th came in at -¥1,080.0B, and Foreigners Buying of Japanese Stocks at -¥990.6B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending December 2nd, reported at ¥46.3B, and to Foreigners Buying of Japanese Stocks at -¥357.2B.
Final Japanese Industrial Production for October rose 1.3% monthly and 1.1% annualized. Forex traders can compare this to Japanese Industrial Production for September, which increased by 0.5% monthly and plunged by 4.4% annualized. Capacity Utilization for October rose by 1.5% monthly. Forex traders can compare this to Capacity Utilization for September, which expanded by 0.4% monthly.
The Final Spanish CPI for November is predicted to decrease by 0.4% monthly and increase by 3.2% annualized. Forex traders can compare this to the Spanish CPI for October, which rose by 0.3% monthly and 3.5% annualized. The Final Spanish Harmonized Spanish CPI for November is predicted to contract by 0.6% monthly and increase by 3.2% annualized. Forex traders can compare this to the Spanish Harmonized CPI for October, which expanded by 0.3% monthly and 3.5% annualized.
The ECB is predicted to keep its Interest Rate unchanged at 4.50% and its Deposit Facility Rate at 4.00%. Traders should wait for the press conference thirty minutes after the announcement for an assessment of future monetary policy.
Following yesterday’s US Fed meeting, which sparked an equity rally and a bond sell-off, as Fed Chair Powell announced three interest rate cuts for 2024, traders will eagerly await interest announcements by the ECB, the Swiss National Bank, the Bank of England, and the Norwegian central bank.
The forecast for the EUR/JPY is cautiously bullish after this currency pair bounced off its horizontal support area. Volatility could rise after the Kijun-sen flatlined, with the Tenkan-sen moving lower following a bearish crossover. The Ichimoku Kinko Hyo Cloud has a bullish bias, but it started to narrow. Traders should also minor the CCI in extreme oversold territory, where it recorded a series of higher lows. A sustained breakout above -100 could trigger a reversal rally. Can bulls regain control over the EUR/JPY and push price action into its horizontal resistance 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 breakout above the 153.850 to 155.350 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 154.450
- Take Profit Zone: 157.850 – 159.350
- Stop Loss Level: 153.150
Should price action for the EURJPY breakdown below 153.850, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 153.150
- Take Profit Zone: 151.400 – 152.200
- Stop Loss Level: 153.850
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