Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Average Cash Earnings for May increased by 1.9% annualized, and Japanese Overtime Pay rose by 2.3%. Forex traders can compare this to Japanese Average Cash Earnings for April, which increased by 1.6% annualized, and Japanese Overtime Pay, which contracted by 1.2% annualized. The Overall Wage Income for Employees for May rose by 1.9% annualized. Forex traders can compare this to the Overall Wage Income for Employees for April, which increased by 1.6%.
The Preliminary Japanese Current Account Balance for May came in at ¥2.850T, and the Preliminary Japanese Adjusted Current Account Balance at ¥2.401T. Economists predicted a reading of ¥2.450T and ¥2.070T. Forex traders can compare this to the Japanese Current Account Balance for April, reported at ¥2.051T, and to the Japanese Adjusted Current Account Balance at ¥2.520T.
Japanese Bank Lending for June increased by 3.2% annualized. Economists predicted a rise of 3.1%. Forex traders can compare this to Japanese Bank Lending for May, which rose 2.9% annualized.
The Japanese Eco Watchers Survey Current Index for June came in at 47.0. Economists predicted a figure of 46.1. Forex traders can compare this to the Japanese Eco Watchers Survey Current Index for May, reported at 45.7.
The German Trade Balance for May is predicted at €19.9B. Forex traders can compare this to the German Trade Balance for April, reported at €22.1B.
Eurozone Sentix Investor Confidence for July is predicted at -0.6. Forex traders can compare this to Eurozone Sentix Investor Confidence for June, reported at 0.3.
The forecast for the EUR/JPY turned bearish after this currency pair broke down below its horizontal support area, turning it into resistance. Volatility could rise after the Kijun-sen and the Tenkan-sen have flatlined, while the Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud drift higher. Traders should also monitor the CCI after recording a negative divergence in extreme overbought territory followed by a breakdown. This technical indicator has plenty of downside potential to lead price action lower. Can bears regain control over the EUR/JPY and force a 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 EUR/JPY remain inside the or breakdown below the 173.500 to 174.200 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 173.850
- Take Profit Zone: 170.900 – 171.550
- Stop Loss Level: 174.750
Should price action for the EUR/JPY break out above 174.200, PaxForex recommends the following trade setup is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 174.750
- Take Profit Zone: 175.500 – 176.000
- Stop Loss Level: 174.200
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