Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japan Reuters Tankan Index for November was reported at 13. Forex traders can compare this to the Japan Reuters Tankan Index for October, reported at 16. Japanese M3 Money Supply for October was reported at ¥2,006.0T. Forex traders can compare this to Japanese M3 Money Supply for September, reported at ¥1,998.8T.
Japanese Preliminary Machine Tool Orders for October increased 81.5% annualized. Forex traders can compare this to Japanese Machine Tool Orders for September, which increased 71.9% annualized.
The Preliminary German CPI for October is predicted to increase 0.5% monthly and 4.5% annualized. Forex traders can compare this to the German CPI for September, which was reported flat at 0.0% monthly, and which increased 4.1% annualized. The EU Harmonized German CPI for October is predicted to increase 0.5% monthly and 4.6% annualized. Forex traders can compare this to the EU Harmonized German CPI for September, which increased 0.3% monthly and 4.1% annualized.
Italian Industrial Production for September is predicted to decrease 0.1% monthly and increase 4.0% annualized. Forex traders can compare this to Italian Industrial Production for August, which decreased 0.2% monthly and was reported flat at 0.0% annualized.
The forecast for the EUR/JPY remains bearish, driven by the safe-haven status of the Japanese Yen as the global economy continues to cool and inflation rises. After the Senkou Span A and Senkou Span B flatlined, the Ichimoku Kinko Hyo Cloud lost its bullish momentum. The Tenkan-sen drives long-term bearish pressures with its descend, but the Kijun-sen flatlined, suggesting a loss of short-term downside momentum and a potential rise in volatility over the next few trading sessions. After the CCI dipped into extreme oversold territory, it began a drift higher. Traders should wait for a breakout above -100, from where a reversal is likely, before entering sell positions. Can bears force the EUR/JPY into its next 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 130.200 to 131.200 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 130.700
- Take Profit Zone: 129.100 – 129.350
- Stop Loss Level: 131.450
Should price action for the EURJPY breakout above 131.200, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 131.450
- Take Profit Zone: 132.250 – 132.550
- Stop Loss Level: 131.200
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