Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Household Spending for March rose 4.1% monthly and decreased 2.3% annualized. Economists predicted an increase of 2.6% and a drop of 2.8%. Forex traders can compare this to Japanese Household Spending for February, which contracted 2.8% monthly and rose 1.1% annualized.
Italian Industrial Production for March is predicted to decrease 1.9% monthly and increase 1.3% annualized. Forex traders can compare this to Italian Industrial Production for February, which rose 4.0% monthly and 3.3% annualized.
The German ZEW Survey Current Situation Index for May is predicted at -35.0, and the German ZEW Survey Economic Sentiment Index at -42.0. Forex traders can compare this to the German ZEW Survey Current Situation Index for April, reported at -30.8, and the German ZEW Survey Economic Sentiment Index at -41.0.
Traders get a quiet session on the economic calendar front, with the German ZEW in focus as the only market-moving event during the European sessions, with nothing significant on the agenda for the rest of the day. Following yesterday’s heavy sell-off in equity markets, bottom-fishing and short-covering could result in an upbeat session, boosting overall sentiment. The cryptocurrency sector stabilized, and the latest D1 candlestick formation on many cryptocurrencies formed a bullish pattern. The EUR/JPY could extend its most recent pullback and offer Forex traders a quiet trade to the downside in what should become a low-profile trading session in an otherwise turbulent bear market.
The forecast for the EUR/JPY is cautiously bearish in the short term after this currency pair failed to extend its rally. With the Kijun-sen flat, and the Ichimoku Kinko Hyo Cloud showing signs of a sideways trend after the Senkou Span B flatlined, traders should expect a choppy move into support. The Tenkan-sen began to drift higher following its bearish crossover, and the CCI is moving higher after completing a breakdown from extreme overbought territory. Traders should monitor the CCI and sell this currency pair if this technical indicator moves below zero. Can bears wrestle control from bulls and force the EUR/JPY 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 137.150 to 138.750 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 137.950
- Take Profit Zone: 131.900 – 132.950
- Stop Loss Level: 139.700
Should price action for the EURJPY breakout above 138.750, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 139.700
- Take Profit Zone: 140.600 – 141.100
- Stop Loss Level: 138.750
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