Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary Japanese GDP for the first quarter rose by 0.4% quarterly and 1.6% annualized. Economists predicted an increase of 0.1% and 1.7% annualized. Forex traders can compare this to the Japanese GDP for the fourth quarter, which was flat at 0.0% quarterly and decreased by 0.1% annualized. Preliminary Private Consumption for the first quarter rose by 0.6% quarterly, preliminary Capital Expenditure by 0.9% quarterly, and preliminary External Demand decreased by 0.3% quarterly. Economists predicted an expansion of 0.4%, a contraction of 0.4%, and a decrease of 0.2%. Forex traders can compare this to Private Consumption for the fourth quarter, which rose by 0.2% quarterly, Capital Expenditure, which dropped by 0.7% quarterly, and External Demand, which increased by 0.4% quarterly. The GDP Price Index for the first quarter rose 2.1% annualized. Economists predicted an increase of 2.0%. Forex traders can compare it to the GDP Price Index for the fourth quarter, which rose by 1.2% annualized.
Final Japanese Industrial Production for March rose by 1.1% monthly and decreased by 0.6% annualized. Forex traders can compare this to Japanese Industrial Production for February, which increased by 4.6% monthly and contracted by 0.5% annualized. Capacity Utilization for March rose by 0.8% monthly. Forex traders can compare this to Capacity Utilization for February, which expanded by 3.9% monthly.
The French Unemployment Rate for the first quarter came in at 7.1%. Economists predicted a reading of 7.1%. Forex traders can compare this to the French Unemployment Rate for the fourth quarter, reported at 7.1%.
The Italian Trade Balance for March is predicted at €2.500B. Forex traders can compare this to Italian Trade Balance for February, reported at €2.108B.
The Eurozone CPI for April is predicted to increase by 0.7% monthly and 7.0% annualized. Forex traders can compare this to the Eurozone CPI for March, which rose by 0.9% monthly and 6.9% annualized. The Eurozone Core CPI for April is predicted to expand by 1.0% monthly and 5.6% annualized. Forex traders can compare this to the Eurozone Core CPI for March, which increased by 1.3% monthly and 5.7% annualized. The Eurozone Harmonized Core CPI for April is predicted to rise 1.0% monthly and 7.3% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for March, which rose by 1.2% monthly and 7.5% annualized.
The forecast for the EUR/JPY remains bearish after this currency pair has formed a head-and-shoulders pattern. Price action is trapped above its flat Tenkan-sen and below its ascending Kijun-sen, following a bearish crossover. The Ichimoku Kinko Hyo Cloud flattened out, with the Senkou Span A and the Senkou Span B trending sideways. Traders should also monitor the CCI after bouncing higher following a dip into extreme oversold territory. This technical indicator has plenty of downside potential, and a rejection by the zero barrier could lead price action lower. Can bears regain control over the USD/JPY and pressure this currency pair 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 147.900 to 148.700 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 148.400
- Take Profit Zone: 144.650 – 145.650
- Stop Loss Level: 149.250
Should price action for the EURJPY breakout above 148.700, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 149.250
- Take Profit Zone: 149.900 – 150.400
- Stop Loss Level: 148.700
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
