Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Preliminary Japanese Jibun Bank Manufacturing PMI for January was reported at 54.6, the Preliminary Japanese Jibun Bank Services PMI at 46.6, and the Preliminary Japanese Jibun Bank Composite PMI at 48.8. Forex traders can compare this to the Japanese Jibun Bank Manufacturing PMI for December, reported at 54.3, the Japanese Jibun Bank Services PMI reported at 52.5, and the Japanese Jibun Bank Composite PMI reported at 52.5.

The Preliminary French Markit Manufacturing PMI for January is predicted at 55.5, the Preliminary French Markit Services PMI at 55.3, and the Preliminary French Markit Composite PMI at 54.5. Forex traders can compare this to the French Markit Manufacturing PMI for December, reported at 55.6, the French Markit Services PMI reported at 57.0, and the French Markit Composite PMI reported at 55.8.

The Preliminary German Markit Manufacturing PMI for January is predicted at 57.0, the Preliminary German Markit Services PMI at 48.0, and the Preliminary German Markit Composite PMI at 49.2. Forex traders can compare this to the German Markit Manufacturing PMI for December, reported at 57.4, the German Markit Services PMI reported at 48.7, and the German Markit Composite PMI reported at 49.9.

The Preliminary Eurozone Markit Manufacturing PMI for January is predicted at 57.5, the Preliminary Eurozone Markit Services PMI at 52.2, and the Preliminary Eurozone Markit Composite PMI at 52.6. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for December, reported at 58.0, the Eurozone Markit Services PMI reported at 53.1, and the Eurozone Markit Composite PMI reported at 53.3.

The forecast for the EUR/JPY remains bearish after price action reached the bottom of its Ichimoku Kinko Hyo Cloud, which shows a bearish crossover. Volatility is expected to increase as the Kijun-sen and the Tenkan-sen flatlined, setting up bulls and bears for a fight to control the next move in this currency pair. Traders should monitor the CCI, which moves higher in extreme oversold territory. A false breakout is expected before this technical indicator resumes its move lower. Can bear maintain pressure on the EUR/JPY and force an extension of the correction 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 128.550 to 129.550 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 128.800
• Take Profit Zone: 126.000 – 126.700
• Stop Loss Level: 130.000

Should price action for the EURJPY breakout above 129.550, PaxForex recommends the following trade set-up is recommended:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 130.000
• Take Profit Zone: 130.800 – 131.600
• Stop Loss Level: 129.550.

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