Source: PaxForex Premium Analytics Portal, Fundamental Insight
Japanese Household Spending for September dropped by 1.3% monthly and 1.1% annualized. Economists predicted a contraction of 0.7% and 1.8%. Forex traders can compare this to Japanese Household Spending for August, which rose by 2.0% monthly and decreased by 1.9% annualized.
Foreign Buying of Japanese Bonds for the period ending November 1st came in at -¥4,457.9B, and Foreigners Buying of Japanese Stocks at ¥139.4B. Forex traders can compare this to Foreign Buying of Japanese Bonds for the period ending October 25th, reported at -¥897.1B, and to Foreigners Buying of Japanese Stocks at ¥10.3B.
Japanese Official Reserve Assets for October came in at $1,239.0B. Forex traders can compare this to Japanese Official Reserve Assets for September, which were $1,254.9B.
The Preliminary Japanese Leading Index for September increased 2.5% monthly, and the Preliminary Japanese Coincident Index rose 1.7% monthly. Forex traders can compare this to the Japanese Leading Index for August, which decreased by 2.4%, and to the Japanese Coincident Index, which contracted 3.2% monthly.
The French Trade Balance for September is predicted at -€7.00B. Forex traders can compare this to the French Trade Balance for August, reported at -€7.40B.
Italian Industrial Production for September is predicted to drop 0.4% monthly. Forex traders can compare this to Italian Industrial Production for August, which rose 0.1% monthly.
Italian Retail Sales for September are predicted to increase by 0.2% monthly. Forex traders can compare this to Italian Retail Sales for August, which contracted by 0.5% monthly.
The forecast for the EUR/JPY turned cautiously bearish after this currency pair showed signs of a breakdown below its horizontal resistance area. Price action trades above its flat Kijun-sen but below its descending Tenkan-sen. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud flatlined, suggesting the lack of short-term upside pressure. Traders should also monitor the CCI after recording a higher high in extreme overbought territory followed by a double breakdown. This technical indicator has plenty of downside potential to lead price action lower. Can bears maintain control over the EUR/JPY and force 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 EUR/JPY remain inside the or breakdown below the 163.950 to 165.400 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 164.700
- Take Profit Zone: 160.100 – 161.200
- Stop Loss Level: 166.100
Should price action for the EUR/JPY break out above 165.400, PaxForex recommends the following trade setup is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 166.100
- Take Profit Zone: 166.700 – 167.500
- Stop Loss Level: 165.400
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