Source: PaxForex Premium Analytics Portal, Fundamental Insight
Preliminary Japanese Industrial Production for June rose by 2.0% monthly and decreased by 0.4% annualized. Forex traders can compare this to Japanese Industrial Production for May, which contracted by 2.2% monthly and rose by 4.2% annualized. The Japanese Industrial Production Forecast for July decreased by 0.2%, and the Industrial Production Forecast for August rose by 1.1% monthly.
Japanese Retail Sales for June dropped by 0.4% monthly and expanded by 5.9% annualized. Forex traders can compare this to Japanese Retail Sales for May, which accelerated by 1.4% monthly and 5.8% annualized.
Japanese Housing Starts for June contracted by 4.8% annualized, and Construction Orders surged by 8.6%. Forex traders can compare this to Japanese Housing Starts for May, which rose by 3.5% annualized, and Construction Orders by 4.2% annualized.
Japanese Consumer Confidence for July came in at 37.1. Economists predicted a figure of 36.0. Forex traders can compare this to Japanese Consumer Confidence for June, reported at 36.2.
The German Import Price Index for June decreased 1.6% monthly and 11.4% annualized. Economists predicted a drop of 0.7% and 10.7%. Forex traders can compare this to the German Import Price Index for May, which contracted 1.4% monthly and 9.1% annualized.
German Retail Sales for June decreased by 0.8% monthly and 1.6% annualized. Economists predicted a rise of 0.2% and a drop of 2.7%. Forex traders can compare this to German Retail Sales for May, which increased by 1.9% monthly and decreased by 2.1% annualized.
The Preliminary Italian GDP for the second quarter is predicted flat at 0.0% quarterly and expand by 0.9% annualized. Forex traders can compare this to the Italian GDP for the first quarter, which rose 0.6% quarterly and 1.9% annualized.
The Spanish Current Account for May is predicted at €3.19B. Forex traders can compare this to the Spanish Current Account for April, reported at €1.84B.
The Preliminary Italian CPI for July is predicted to expand 0.1% monthly and 6.1% annualized. Forex traders can compare this to the Italian CPI for June, which was flat at 0.0% monthly and surged 6.4% annualized. The Preliminary Italian Harmonized CPI for July is predicted to drop by 1.3% monthly and expand by 6.4% annualized. Forex traders can compare this to the Italian Harmonized CPI for June, which rose 0.1% monthly and accelerated by 6.7% annualized.
The Eurozone CPI for July is predicted to surge by 5.3% annualized and the Eurozone Core CPI by 5.4%. Forex traders can compare this to the Eurozone CPI for June, which increased 5.5% annualized, and to the Eurozone Core CPI, which rose 5.5% annualized.
The preliminary Eurozone GDP for the second quarter is predicted to increase 0.2% quarterly and 0.5% annualized. Forex traders can compare this to the Eurozone GDP for the first quarter, which was flat at 0.0% quarterly and rose 1.1% annualized.
The forecast for the EUR/JPY is cautiously bearish after this currency pair bounced off its sideways drifting Ichimoku Kinko Hyo Cloud following the YCC tweak by the Bank of Japan last week. The descending Kijun-sen and Tenkan-sen add to downside pressure. Traders should also monitor the CCI following its double breakout from extreme oversold territory and above zero. This technical indicator has more upside potential, but a reversal below zero could trigger more selling. Can bears regain 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 155.700 to 156.900 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 156.100
- Take Profit Zone: 151.050 – 152.000
- Stop Loss Level: 157.200
Should price action for the EURJPY breakout above 156.900, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 157.200
- Take Profit Zone: 158.000 – 159.000
- Stop Loss Level: 156.900
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