Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Corporate Service Price Index for June increased by 3.0% annualized. Economists predicted a rise of 2.6% annualized. Forex traders can compare this to the Japanese Corporate Service Price Index for May, which rose 2.7% annualized.
Foreign Buying of Japanese Bonds for the period ending July 20th came in at -¥730.4B, and Foreigners Buying of Japanese Stocks at -¥49.0B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending July 13th, reported at -¥206.0B, and to Foreigners Buying of Japanese Stocks at ¥227.8B.
The French Business Survey for July came in at 99. Economists predicted a level of 96. Forex traders can compare this to the French Business Survey for June, reported at 99.
The German IFO Business Climate Index for July is predicted at 88.9, the German IFO Current Assessment Index at 88.5, and the German IFO Expectations Index at 89.0. Forex traders can compare this to the German IFO Business Climate Index for June, reported at 88.6, the German IFO Current Assessment Index at 88.3, and the German IFO Expectations Index at 89.0.
Eurozone Money Supply M3 for June is predicted to expand by 1.9% annualized, and Private Sector Loans to rise by 0.5% annualized. Forex traders can compare this to Eurozone Money Supply M3 for May, which rose 1.6% annualized, and to Private Sector Loans by 0.3% annualized.
The forecast for the EUR/JPY remains bearish due to the ongoing risk of intervention by the Bank of Japan. The Tenkan-sen and the Kijun-sen continue to move lower after a bearish crossover. With mounting bearish pressure, the flat Senkou Span A and Senkou Span B of the Ichimoku Kinko Hyo Cloud could begin to descend, adding more downside momentum. Traders should also monitor the CCI in extreme oversold territory, which may rise to challenge the -100 level before retreating. This technical indicator may trade below -100 for an extended period. Can bears maintain 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 165.000 to 165.900 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 165.300
- Take Profit Zone: 161.300 – 162.250
- Stop Loss Level: 166.900
Should price action for the EURJPY break out above 165.900, PaxForex recommends the following trade setup is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 166.900
- Take Profit Zone: 168.800 – 170.000
- Stop Loss Level: 166.900
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