Source: PaxForex Premium Analytics Portal, Fundamental Insight

Japanese Machine Orders for October increased by 17.1% monthly and by 2.8% annualized. Economists predicted an increase of 2.8% and a decrease of 11.3%. Forex traders can compare this to Japanese Machine Orders for September, which decreased by 4.4% monthly and by 11.5% annualized. Japanese M3 Money Supply for November was reported at ¥1,925.3T. Forex traders can compare this to Japanese M3 Money Supply for October, reported at ¥1,918.7T.

The German Trade Balance for October was reported at €18.2B. Economists predicted a figure of €18.0B. Forex traders can compare this to German Trade Balance for September, reported at €17.6B. Exports for October increased by 0.8% monthly, and Imports increased by 0.3% monthly. Economists predicted an increase of 1.2% and 1.0%. Forex traders can compare this to Exports for September, which increased by 2.3% monthly, and to Imports, which increased by 0.2% monthly. The German Current Account Balance for October was reported at a €22.5B. Forex traders can compare this to the German Current Account Balance for September, reported at €25.2B.

The forecast for the EUR/JPY turned bearish after a breakout above its Ichimoku Kinko Hyo Cloud, which is sloping downward, is losing momentum. While the Kijun-sen continues to ascend, the Tenkan-sen turned sideways, and the CCI moved out of extreme overbought conditions with more downside potential. Financial markets remain at risk of a correction, favoring a firmer Japanese Yen. Can bears step in and force a sell-off in the EUR/JPY? 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 126.250 to 126.750 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 126.500
• Take Profit Zone: 121.600 – 122.150
• Stop Loss Level: 127.250

Should price action for the EURJPY breakout above 126.750 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 127.250
• Take Profit Zone: 128.350 – 128.700
• Stop Loss Level: 126.750

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