Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Household Spending for December rose 0.1% monthly and decreased 0.2% annualized. Economists predicted an increase of 0.7% and 0.3%. Forex traders can compare this to Japanese Household Spending for November, which contracted 1.2% monthly and 1.3% annualized.
Japanese Labor Cash Earnings for December decreased 0.2% annualized, and Japanese Real Cash Earnings contracted 0.2% annualized. Forex traders can compare this to Japanese Labor Cash Earnings for November, which increased 0.8% annualized, and to Japanese Real Cash Earnings, which rose 0.8% annualized. Japanese Overtime Pay for December increased by 4.8% annualized. Forex traders can compare this to Japanese Overtime Pay for November, which expanded by 2.9% annualized.
The Preliminary Japanese Current Account Balance for December was reported at -¥0.371T, and the Preliminary Japanese Adjusted Current Account Balance at ¥0.790T. Forex traders can compare this to the Japanese Current Account Balance for November, reported at ¥0.897T, and the Japanese Adjusted Current Account Balance reported at ¥1.370T. Japanese Bank Lending for January increased 0.6% annualized. Forex traders can compare this to Japanese Bank Lending for December, which rose 0.6% annualized.
The Japanese Eco Watchers Survey Current Index for January was reported at 37.9, and the Japanese Eco Watchers Survey Outlook Index was reported at 42.5. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for December, reported at 57.5, and the Japanese Eco Watchers Survey Outlook Index reported at 50.3.
The French Trade Balance for December was reported at -€11.3B, and the French Current Account Balance at -€7.1B. Forex traders can compare this to the French Trade Balance for November, reported at -€9.8B, and the French Current Account Balance at -€3.6B. French Exports for December came in at €44.1B, and French Imports at €55.4B. Forex traders can compare this to French Exports for November, reported at €44.3B, and French Imports at €54.0B.
Spanish Industrial Production for December increased 1.3% annualized. Economists predicted an expansion of 4.4%. Forex traders can compare this to Spanish Industrial Production for November, which rose 4.6% annualized.
The forecast for the EUR/JPY turned bearish after this currency pair spiked into resistance from were a momentum loss followed. Price action is likely to correct into its descending Ichimoku Kinko Hyo Cloud, from where more downside may unfold. The Kijun-sen and the Tenkan-sen remain flat, confirming the absence of bullish momentum. Traders should also monitor the CCI, which currently trades in extreme overbought territory, for a breakdown below 100 before placing sell orders. Can bears increase their control over the EUR/JPY and force price action into 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 131.250 to 132.200 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 131.750
- Take Profit Zone: 128.900 – 129.500
- Stop Loss Level: 132.900
Should price action for the EURJPY breakout above 132.200, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 132.900
- Take Profit Zone: 133.450 – 134.100
- Stop Loss Level: 132.000
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