Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Bank of Japan decided to keep interest rates at -0.10%. Forex traders can compare this to the previous Bank of Japan interest rate decision where interest rates were left unchanged at -0.10%.
The German PPI for November increased 0.8% monthly and 19.2% annualized. Economists predicted an increase of 1.4% and 19.9%. Forex traders can compare this to the German PPI for October, which increased 3.8% monthly and 18.4% annualized.
The German IFO Business Climate Index for December is predicted at 95.3, the German IFO Current Assessment Index at 97.5, and the German IFO Expectations Index at 93.5. Forex traders can compare this to the German IFO Business Climate Index for November, reported at 96.5, the German IFO Current Assessment Index at 99.0, and the German IFO Expectations Index at 94.2.
The Eurozone CPI for November is predicted to increase 0.5% monthly and 4.9% annualized. Forex traders can compare this to the Eurozone CPI for October, which increased 0.8% monthly and 4.9% annualized. The Eurozone Core CPI for November is predicted to increase 0.1% monthly and 2.6% annualized. Forex traders can compare this to the Eurozone Core CPI for October, which increased 0.1% monthly and 2.6% annualized. The Eurozone Harmonized Core CPI for November is predicted to increase 0.1% monthly and 2.6% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for October, which increased 0.3% monthly and 2.6% annualized.
The forecast for the EUR/JPY turned bearish after price action completed a minor rally within its longer-term bearish chart pattern. Traders should expect volatility to increase as the Tenkan-sen drifts higher while the Kijun-sen moves lower. A bearish crossover is likely to spark the next correction. Adding to the bearish outlook is the descending Ichimoku Kinko Hyo Cloud, while the CCI spiked into extreme overbought territory. Traders should wait for a breakdown below 100 before entering sell orders. Can bears pressure the EUR/JPY into a correction until it reaches 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 128.250 to 129.100 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 128.650
- Take Profit Zone: 126.000 – 126.700
- Stop Loss Level: 129.650
Should price action for the EURJPY breakout above 129.100, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 129.650
- Take Profit Zone: 130.700 – 131.350
- Stop Loss Level: 129.100.
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