Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary Japanese Jibun Bank Manufacturing PMI for November came in at 49.4, the Preliminary Japanese Jibun Bank Services PMI at 50.0, and the Preliminary Japanese Jibun Bank Composite PMI at 48.9. Forex traders can compare this to the Japanese Jibun Bank Manufacturing PMI for October, reported at 50.7, the Japanese Jibun Bank Services PMI at 53.2, and the Japanese Jibun Bank Composite PMI at 51.8.
The Final Japanese Leading Index for September came in at 97.5, and the Final Japanese Coincident Index at 101.4. Forex traders can compare this to the Japanese Leading Index for August, reported at 101.3, and to the Japanese Coincident Index at 101.8.
The French Business Survey for November is predicted at 102. Forex traders can compare this to the French Business Survey for October, reported at 103.
The German IFO Business Climate Index for November is predicted at 85.0, the German IFO Current Assessment Index at 93.8, and the German IFO Expectations Index at 77.0. Forex traders can compare this to the German IFO Business Climate Index for October, reported at 84.3, the German IFO Current Assessment Index at 94.1, and the German IFO Expectations Index at 75.6.
Market participants await speeches by German Bundesbank members Mauderer, Wuermeling, and Vice President Buch, as the German central bank holds the most power in the European Central Bank. ECB members De Guindos, Schnabel, and Enria will also give speeches, and the ECB will publish minutes from its latest monetary policy meeting. Traders will look for details on quantitative tightening during today’s thin trading sessions as the US celebrates Thanksgiving, which will take volume off the market.
The forecast for the EUR/JPY remains bearish after this currency pair was rejected by its horizontal resistance area and began a downward drift. Adding to the bearish outlook is the narrowing Ichimoku Kinko Hyo Cloud, which topped out and is exposed to a pending bearish crossover. The Kijun-sen confirms the absence of short-term bullishness after turning flat, but the Tenkan-sen adds the potential for a volatility rise due to its erratic moves. Traders should monitor the CCI following its failed breakout from extreme oversold territory, which resulted in a lower high before receding below the zero barrier from where it has plenty of downside potential. Can bears increase their 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 144.350 to 145.450 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 144.950
- Take Profit Zone: 139.500 – 140.900
- Stop Loss Level: 146.100
Should price action for the EURJPY breakout above 145.450, PaxForex recommends the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 146.100
- Take Profit Zone: 147.100 – 147.700
- Stop Loss Level: 145.450
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